Parental Liability in Turkish Competition Law

Parental liability in Turkish competition law is mainly concerned with holding parent companies accountable for the antitrust violations committed by parent companies. The main idea of this principle is that the parent company exercises decisive influence over its subsidiary, therefore making it responsible for ensuring compliance with competition rules. The liability is not just limited to direct involvement in the infringement, it also extends to the parent company when it can be demonstrated that the subsidiary operates as an economic unit within the group structure. The Turkish Competition Authority (Authority) applies this doctrine in accordance with European Union (EU) practices, where the principle of economic unity is often cited to justify the inclusion of the parent in the assessment of fines. However, unlike the EU, Turkey does not automatically hold parent companies liable unless decisive control is proven. Indeed, in some cases, the Turkish Competition Board examines the influence exerted by the parent, applying a more limited form of liability depending on the degree of control exercised. However, unlike the European Commission's approach, even in cases where the Authority finds some form of a “limited” parental liability, the Authority does not impute responsibility to the ultimate parent that holds decisive influence over the group.

For more information on parental liability in Turkish antitrust law, please feel free to reach out to ELIG Gurkaynak at +90 212 327 1724 or through gonenc.gurkaynak@elig.com.