Conducting an investigation after Aria’s owner Is-Tim’s complaint against Turkcell and Telsim for the reason that they haven’t made a “Nationwide circulation agreement”, Competition Council pronounced its decision today. Determining that Turkcell and Telsim “abuse their dominant position” in a market where they have the major control and noting that they “violate the 6th article of the Act regarding Protection of Competition”, Competition Council has ruled money penalty.
According to the ruling, Turkcell and Telsim will pay a money penalty of 1 percent of their net sales in the year 2001. Amount of the money Turkcell will pay is determined as 21 trillion 822 billion 150 million 300 hundred thousand Turkish Liras, whereas the money Telsim will pay is 8 trillion 580 billion 807 million 700 hundred thousand Turkish Liras.
Determinations made by Competition Council upon complaint of Is-Tim are as follows:
It is determined that:
- Turkcell and Telsim have dominant positions in GSM telecommunication substructure services market,
- Those substructures of Turkcell and Telsim, who have dominant positions in the market, are sine qua non for entrepreneurs showing activity in GSM services market as they get into the market.
- Turkcell and Telsim had rejected Is-Tim’s proposal to make use of the GSM telecommunication substructure they own, through nationwide circulation,whereas this rejection was not based on objective reasonings.
Telecommunication Institution will Regulate
As it is well known, conflict arose between Is-tim versus Turkcell and Telsim on “Nationwide circulation” had resulted by Is-Tim’s application to International Arbitration. Competition Council adopted the resolution that Telecommunication Institution would make regulation concerning how to stop the violation of Turkcell and Telsim and determine the arrangements necessary for re-establishment of competition in the market. Resolution of Competition Council was announced as follows:
“It has been decided that it would be appropriate for Telecommunication Institution, whose mission is making necessary arrangements in relevant markets of Telecommunication sector, to determine the behaviours to be acted or be shunned in order to stop such violation and re-establish competition, and then those conditions, to be determined by the above-mentioned Institution, shall be announced to relevant parties, provided that they have to be priorly adopted by Competition Council after being forwarded to it, in accordance with the section 9/1 of Act number 4054…”
As it is well known, Competition Council and Telecommunication Institution had signed a protocol for cooperation, wherein it was aimed to handle common issues concerning their power and function more effectively.
In resolution of Competition Council, it is also noted that parties may appeal to Council of State about the case.