What is Competition Law?

The assumption that economic relations are focused on competition constitutes the basic principle on which the market economy is based. Competitive market structure encourages firms to constantly adapt their competitive strengths to market conditions. However, if the markets are left on their own, state intervention may be deemed necessary against the risk that the undertakings in the market will cooperate instead of competing, which will adversely affect social welfare and economic development.

Competition Law is a branch of law that aims to increase social welfare by securing freedom of enterprise and ensuring efficiency in resource allocation. In this respect, the Law No. 4054 on the Protection of Competition was adopted in 1994 in order to prevent the actions and transactions of undertakings that distort effective competition conditions, to take the necessary measures and to implement the regulations. The main purpose of the Law No. 4054 on the Protection of Competition; It is to prevent the abuse of this dominance by the undertakings that dominate the market with agreements, decisions and practices that prevent, distort or restrict competition in the goods and service markets, and to ensure the protection of competition by making the necessary regulations and inspections.