How does the process work when the Competition Authority opens an investigation into a company?

Law No. 4054 contains mandatory provisions aimed at protecting competition in goods and services markets, and rules on the sanctions applied when those provisions are violated.

Law No. 4054 sets out detailed procedural rules on when the Competition Board opens an examination, which powers it may use and to what extent, how long examinations must take, the rights of the undertakings concerned during the process, how decisions are taken at the end of an examination, the sanctions that may apply during and after the process, and how Board decisions can be challenged.

When the Competition Board opens an investigation into a company or undertaking, the legal process broadly consists of four main stages:

1. Preliminary Inquiry and the Decision to Open an Investigation

The Board starts the process when it reaches an allegation of infringement through complaints and notifications in the market, or through examinations it carries out on its own initiative (ex officio). If the allegations are found serious and concrete, an investigation can be opened directly, or a preliminary inquiry can be conducted first. If the findings in the preliminary inquiry report point to a competition infringement, the Board formally decides to open an investigation into the undertakings concerned.

2. Notification of the Investigation and the Evidence-Gathering Process

• Official notification period: The Competition Board is legally obliged to notify the investigation decision in writing to the company or companies concerned within 15 days. This notification summarises the grounds of the investigation and the nature of the alleged infringement.
• Power of on-site inspection: During the investigation, Board experts (rapporteurs) have the power to carry out on-site inspections (dawn raids) at company headquarters and administrative buildings. Digital data can be examined, copies of physical documents can be taken, and information can be requested from the parties.
• Alternative resolution routes: Depending on the nature of the infringement and the stage of the process, undertakings may use settlement or commitment mechanisms with the Board. These mechanisms can allow the process to be ended early, with a reduction in administrative fines or without a fine.

3. Submission of Defences and the Reporting Stage

So that the parties do not lose their rights, the investigation is built on a series of three written defences:

• First written defence: The company that receives the investigation notice submits its first written defence within 30 days of the date of notification.
• Investigation report: The investigation report, prepared by the experts and containing legal/economic assessments and penalty proposals, is notified to the parties.
• Second written defence: The company submits its second written defence to the Board within 30 days of notification of this report.
• Additional opinion and final defence: On the basis of the additional opinion the rapporteurs prepare in response to this defence, the company has the right to make its third and final written defence, again within a 30-day period.

4. Oral Hearing, Final Decision and Judicial Review

• Oral hearing: Once the written stages are completed, an oral hearing is organised at the request of the parties or where the Board considers it necessary.
• Decision period: As a rule, a competition investigation is concluded within 6 months at the latest. However, provided it gives justified reasons, the Board may extend this period once, by up to 6 more months.
• Decision and judicial review: At the end of the examination, the Board may decide that there is no infringement, or may impose heavy administrative fines or structural/behavioural remedies. An annulment action can be brought before the Ankara Administrative Courts against the Competition Board’s final decisions, from the date of notification.

Note: Competition law proceedings carry high administrative fines and sanction risks that directly affect commercial reputation; therefore, following the time limits and conducting the defence strategy with professional legal support from day one is critical to avoiding loss of rights.