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Unfair Competition Law in Turkey

Unfair competition is regulated in the Turkish Commercial Code (TCC); it is of great importance to prevent violation of the rule of good faith during the occurrence of commercial activities and to ensure the relationship between both commercial competitors and suppliers and suppliers that supply goods or services with a more transparent and reliable scope.

What is Unfair Competition Within The Scope of TCC Article 54?

By Article 54 of the Turkish Commercial Code no. 6102, unfair competition ensures an honest and undistorted competitive environment to ensure the interests of all participating parties. According to the TCC art. 54/2, all deceptive and dishonest transactions, behaviours, and practices that may occur between competing competitors or between suppliers and customers are against the law and evaluated within the framework of unfair competition.

Therefore, within the scope of TCC 54, unfair competition aims to create a competitive environment by the rule of good faith and to protect the interests of undertakings subjected to unfair competition. In addition to this, the scope of unfair competition has been broadened with the expression “all participants” in TCC 54/1, and the scope of unfair competition has been expanded by including not only the relations between competitors but also other activities and practices such as the relationship between the consumer and the supplier.

What Are The Conditions of Unfair Competition?

The unfair competition cases are regulated in article 55 of the Turkish Commercial Code No. 6102. However, the cases of unfair competition are not limited as they are listed in Article 55 of the TCC, and Article 55 of the TCC lists the main cases of unfair competition. The main cases of unfair competition within the scope of the Turkish Commercial Code are as follows:

Advertisements and Sales Methods Contrary to the Rules of Integrity and Other Unlawful Behaviors

When this unfair competition situation is considered more comprehensively, as stated in TCC art.55; misrepresenting and unnecessarily vilifying others or their goods, prices and activities, trying to claim that they have the said talent by pretending to have these awards and honours even though they have not received a degree, diploma or award related to the work done, or profession names or titles that are not owned; it includes many situations such as using sales methods, trying to prevent the customer’s freedom of decision with sales methods.

Leading to Breach or Termination of Contract

By giving an example of unfair competition in article 55 of the TCC; to be able to make a contract with the customer, trying to act in violation of the customers’ previous agreements with others, directing the third parties to act against their workers or other people in the performance of their work, and benefiting themself or another third party with this guidance; many examples are listed in this regard, such as trying to induce workers, their agents or other employees to disclose their employer’s secrets.

Unauthorized Use of Others’ Work Products

For example, making unauthorized use of an offer, account or work product entrusted to the person, or using another person’s ready-made work products by taking over technical reproduction methods without the appropriate contribution of the person, are examples of this unfair competition.

Unlawful Disclosure of Production and Business Secrets

Especially in unfair competition cases, ‘notifying anyone who evaluates or informs someone else the information and the producer’s business secrets that have been obtained without permission and secretly or illegally.

Non-Compliance with Business Conditions

In particular, non-compliance with the ordinary business conditions determined by law or contract is also considered unlawful.

Using Transaction Terms Contrary to the Integrity Rule

Using transaction terms contrary to the rule of good faith in a misleading manner against the other party is one case of unfair competition.

What Are Unfair Competition Lawsuits/Cases?

In case of unfair competition, both civil and criminal cases can be filed. The lawsuits that can be filed are listed in TCC article 56.

Lawsuits that may be filed against unfair competition;

• Detection Case,
• Prohibition of Unfair Competition,
• The Case for Refund of Unfair Competition (The Case for Elimination of the Financial Situation as a Result of Unfair Competition),
• The Case of Pecuniary Damage and Non-pecuniary Damage.

In case of unfair competition, criminal cases can also be filed. In case of unfair competition, criminal acts and behaviours are specified in article 62 of the Turkish Commercial Code no. 6102:

TCC Art. 62:

a) Those who deliberately commit one of the acts of unfair competition stated in Article 55,
b) Those who deliberately give false or misleading information about their situation, products, business products, commercial activity and business to prefer their offers and offers to those of their competitors,
c) Those who deceive employees, their proxies or other assistants to get the employer or their clients to seize the production or trade secrets,
d) Those who do not prevent this act or do not correct false statements after learning from their employers or clients that their workers or employees or their proxies have committed an act of unfair competition while performing their job unless the act does not constitute another crime requiring a heavier penalty, under Article 56 upon the complaint of one of those who have the right to file a lawsuit, they are sentenced to imprisonment of up to two years or a judicial fine for the acts falling within the scope of each subparagraph.

What Are The Legal Responsibilities That Arises From Unfair Competition?

Legal responsibilities arising from the unfair competition are discussed in article 56 of the Turkish Commercial Code. Legal responsibilities arising from unfair competition in accordance with these provisions are as follows:

• Detection of the injustice of the person’s act,
• Prohibition of the person from the act committed,
• Termination of the material result caused by the person,
• If the person has made false or misleading statements, correcting these statements,
• If there is no other method to end unfair competition, delivery of vehicles and goods that cause unfair competition,
• If material or moral damage has occurred, the elimination of this damage,

Such cases are legal responsibilities arising from unfair competition.

What Are The Penal Liabilities Arising From Unfair Competition?

Criminal responsibilities arising from the unfair competition are listed in article 62 of the TCC.

TCC art. 62:

a) Those who deliberately commit one of the acts of unfair competition stated in Article 55,
b) Those who deliberately give false or misleading information about their situation, products, business products, commercial activity and business to prefer their offers and offers to those of their competitors,
c) Those who deceive employees, their proxies or other assistants to get the employer or their clients to seize the production or trade secrets,
d) Those who do not prevent this act or do not correct false statements after learning from their employers or clients that their workers or employees or their proxies have committed an act of unfair competition while performing their job unless the act does not constitute another crime requiring a heavier penalty, under Article 56 Upon the complaint of one of those who have the right to file a lawsuit, they are sentenced to imprisonment of up to two years or a judicial fine for the acts falling within the scope of each subparagraph.

What is The Unfair Competition Litigation Period?

In case of unfair competition, lawsuits can be filed within one year from the day the act causing unfair competition is learned and within three years from the birth of the act causing unfair competition. If the act causing unfair competition continues, the statute of limitations will be deemed to have not expired.

Which Court is Competent in Unfair Competition?

In cases arising from or arising from unfair competition, it is the court of the place of residence of the real or legal person on the date of the lawsuit, pursuant to article 6 of the Code of Civil Procedure. Commercial courts are the competent court in cases arising from unfair competition. Where there are no commercial courts, cases arising from unfair competition are heard in civil courts of the first instance.

What is the Connection Between Competition Law and Unfair Competition Law?

Competition Law is a branch of law built on the rules created to protect competition in goods and services markets. It is regulated under Law No. 4054 on the Protection of Competition. The main purpose of this law; is to prevent agreements and practices that distort, prevent and restrict competition in the goods and services market, to prevent the dominant undertakings from abusing their power, and to ensure the protection of competition by making the necessary arrangements. While the Competition Law aims to protect free competition at the macro level, fair competition is protected at the micro level in the unfair competition law. While the predominant aspect of unfair competition provisions in practice is to protect the relevant interests of competitors or persons involved in the competition process, the main purpose of competition law is to ensure economic efficiency and the continuation of competition. In addition, another distinction is that in the case of unfair competition law, there are sanctions in the field of private law within the scope of the provisions of the Turkish Obligation Code and Turkish Civil Code. It is a mixed law branch that shows the characteristics of public law and produces results in private law.

Sample Supreme Court Decisions

11th Civil Chamber 2012/14357 E., 2013/12051 K.

“The attorney of the Plaintiff states that his client is the owner of utility model certificate under the invention title of “face coverings for sandwich panels used in roof and facade cladding” numbered 1996-00514 and utility model documents under the invention title of “a sandwich panel” numbered 2004/02645. The defendant, who was informed, received a utility model certificate with the number 2004/01630, whereas the “protective locked window sill detail used in insulated composite panels” described in the defendant’s model also fell within the claims of the plaintiff’s utility model documents, therefore it did not have the qualification of innovation, after working with his client for 17 years. Claiming that the actions of the defendant, which put the “forehead coated products” belonging to the plaintiff into commercial circulation with the help of the company he founded after his departure, claiming that the actions of the defendant are contrary to the rule of good faith and constitute unfair competition, demand and sue the invalidity and cancellation of the utility model certificate numbered TR 2004-01630, the determination and prevention of unfair competition. is work. With the correction petition dated 06.11.2006, the defendant’s claim that the “curled forehead covering” invention, which was developed and used for the first time by the defendant’s attorney while he was working with his client, was registered in his name by extortion, and with the reference to Article 166 of the Decree Law No. Pursuant to the 13th article of the Law No. 13, he demanded and sued that the utility model be transferred to his client, otherwise, the invalidity of the utility model certificate due to its presentation to the public before the registration, and the prevention of unfair competition with the determination of it. (…)”

11th Civil Chamber 2018/2784 E., 2019/4189 K.

“The Plaintiff’s Attorney; that the client and the defendant operate as rivals of each other in the same field by providing mobile phone service, that the defendant has started to broadcast advertisements with the title “LG G3″ in visual media, that this commercial film is against the Law on the Protection of Consumer No 6502 with Article 55 of the TCC, because the defendant stated ” that those who carry their number to Avea will not pay tariff fees for one year”, whereas during the campaign, invoices are covered only up to 50.00 TL including taxes, it is not stated in the main promise part of the advertisement that invoices over 50.00 TL will be paid by the consumer, and that the advertisement contains incomplete information, that advertising and sales methods that are contrary to the rules of honesty, false and incomplete presentation of campaigns and advertisements made with false and misleading statements, according to Articles 54 and 55 of the TCC, cause unfair competition, that the unfair competition created by the advertisement and moral damages, the defendant’s advertisement titled “LG G3” constitutes unfair competition and for the time being, 10,000 TL pecuniary damages and 10,000 TL non-pecuniary damages be collected from the defendant and the decision be announced. (…)”

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