GENERAL GROUNDS1 FOR THE BLOCK EXEMPTION COMMUNIQUÉ ON VERTICAL AGREEMENTS AND CONCERTED PRACTICES IN THE MOTOR
VEHICLE SECTOR
The distribution and repair of motor vehicles are crucial with regard to
consumers. Particularly when it is taken into account that owning an automobile is
the second largest expenditure of a large part of consumers, this importance is better
understood. In Turkey, motor vehicles such as automobiles, light commercial
vehicles, minibuses, buses, trucks and trailers, and their spare parts reach
consumers through distribution networks created by authorized sellers of
manufacturers and importers. And maintenance and repair services required for the
safe and orderly operation of the motor vehicles in question, which are used for
transport and carriage on highways are again offered to consumers by a network of
authorized services set up by providers.
Providers’ setting up this network of sales and servicing needed by him in
order to be able to offer his products is not welcome due to reasons such as the
highness of cost, the success of local undertakings in establishing a relation with
consumers, and the sharing of stock expenses with the reseller in particular, and
resorting to vertical integration is avoided. Therefore, manufacturers and importers
set up their networks of sales and servicing mostly by authorized selling and
authorized service agreements concluded by distributors and services with
whom/which they do not have links of ownership.
Restrictions of competition which exist in these agreements that are very
similar in nature although concluded by resellers of different providers set
contrariness to article 4 of the Act on the Protection of Competition No. 4054.
Whether horizontal or vertical, the legal consequence faced by all agreements
contrary to the Competition Act is invalidity. However, it is doubtless that like many
vertical agreements, the ones in the automotive sector also have effects of enhancing
efficiency and quality, provided that they bear certain conditions. For this reason, it is
1 This Section as to the general grounds has not been published in the Official Gazette.
1
required to consider the agreements in question under the exemption provided for in
article 5 of the Act.
Due to the fact that distribution agreements made in the motor vehicle sector
are organized by the network of resale agreements involving similar restrictions,
which may be identified as a category, the Block Exemption Communiqué on Motor
Vehicle Distribution and Servicing Agreements No. 1998/3 entered into force by
having being published in the Official Gazette of April 1, 1998, by the power provided
in article 5 of the Act No. 4054. Amendments were envisaged in the notification
periods for annulment in the Communiqué No. 1998/3, and the Communiqué
concerning an Amendment to the Block Exemption Communiqué on Motor Vehicle
Distribution and Servicing Agreements No. 2000/3 entered into force after having
been published in the Official Gazette of October 4, 2000.
Despite the fact that the Communiqué No. 1998/3 was a regulation aimed at
the motor vehicle sector, it covered certain types of agreements concluded in the
sector. Due to the fact that the Communiqué covered only those agreements where
distribution and servicing existed together, the other types of agreements in the
automotive sector remained outside the scope and providers were not granted
another alternative by which they can enjoy block exemption as to determining the
distribution system. This situation led to the fact that the efforts for structuring the
distribution system flexibly remained outside the scope of block exemption, and
rendered the Communiqué a regulation which did not cover new techniques of
distribution.
On the other hand, the Communiqué No. 1998/3 envisages a system
consisted of the combination of selective and exclusive distribution systems for the
distribution of motor vehicles and servicing services. With the provisions of the
Communiqué, an automobile manufacturer is able to impose minimum standards on
authorized sellers and services in issues such as the technical equipment of the
workplace, training of personnel, advertising etc. In accordance with the selective
nature of distribution, sales by authorized sellers to unauthorized resellers can be
prohibited. And in accordance with the exclusive nature of distribution, authorized
sellers can be prohibited from selling actively to outside the regions of the agreement
2
for purposes of ensuring that they concentrate in the regions of the agreement.
Consequently, in the current system, the only competitive pressure faced by the
authorized seller emerges as passive sales. This situation necessitated regulations
which would increase intra-brand competition.
One of the most fundamental regulations introduced by the Communiqué No.
1998/3 are those regulations aimed at guaranteeing the economic independence of
authorized sellers and services. As an example of the regulations in question, one
may cite provisions such as preventing the reseller from intervening in the resale
price, ensuring that the authorized seller is able to conclude subselling agreements
within his own region in the existence of justifiable grounds, signing agreements for at
least 5 years in the event of concluding them definitely, and the existence of at least
two-year period for notifying an annulment in the event of concluding them
indefinitely. And with a view to ensuring multi-branding, the existence of an
authorized seller’s right was rendered compulsory as to his ability to sell motor
vehicles of another brand, provided that it was at separate places of sale, with a
separate management and in the form of a separate legal entity. These obligations
imposed on authorized sellers and services resulted in the fact that the multi-
branding targeted by the Communiqué No. 1998/3 did not take place de facto.
Therefore, both the promotion of multi-brand sales and the strengthening of minimum
safeguard standards secured in favor of authorized sellers via contract were required.
Another goal among those of the Communiqué No. 1998/3 is to ensure
competition in after-sales services. Within this framework, provisions have been
introduced, aimed at ensuring that manufacturers of spare parts have access to
authorized sellers. Authorized sellers and services were granted the right to be able
to use spare parts of matching quality, and so were manufacturers of spare parts to
be able to place in a visible manner their brands and logos upon their products sold
by them to manufacturers of automobiles. Thanks to such provisions, it is ensured
that consumers, authorized sellers and independent repairers can know who
manufactured a part, and who may be in the position of a provider of a part besides a
manufacturer of motor vehicles. Furthermore, for purposes of granting independent
repairers the opportunity of competing with authorized services, the obligation has
been introduced that manufacturers would provide independent repairers with the
3
technical information related to the maintenance and repair of motor vehicles.
However, it is seen that a part of these regulations introduced by the Communiqué
does not reflect on the practice. That independent repairers behave shyly in having
access to the technical information, that manufacturers of spare parts have difficulty
in reaching the service network of providers, and that sufficient competition cannot be
ensured in after-sales services are in the lead of these situations.
Experiences obtained from the implementation of the Communiqué No. 1998/3
more than 5 years, have indicated, as is summed up above, that some regulations of
the Communiqué fall short of attaining the objective for a competitive market, and
some of them give rise to inconveniences as regards the practice. In the light of these
establishments, it was concluded that a new regulation was needed, which
allowed providers flexibility in setting up the distribution and servicing
network,
strengthened the position of authorized sellers and services vis-à-vis the
provider,
ensured that manufacturers of spare parts were involved in competition,
cleared the way for independent repairers to constitute an alternative for
consumers by means of facilitating their access to the technical
information, equipment and diagnostic devices related to maintenance and
repair services.
Taking into account the foregoing statements, the Competition Board decided
on the issue of this Communiqué.
4
Block Exemption Communiqué on Vertical Agreements and Concerted Practices in the Motor Vehicle Sector
Communiqué No: 2005/4
Purpose Article 1- The purpose of this Communiqué is to determine the conditions of
exempting as a block vertical agreements in the motor vehicle sector from the
application of the provisions of article 4 of the Act on the Protection of Competition
dated 7.12.1994 and numbered 4054.
Scope Article 2- In case those vertical agreements which are about the purchase,
sale or resale of new motor vehicles, their spare parts or repair and maintenance
services contain vertical limitations have been exempted as a block, based on article
5 paragraph three of the Act, from the prohibition in article 4 of the Act, on condition
that they comply with the conditions provided in this Communiqué.
Vertical agreements that involve provisions in relation to the transfer of
intellectual rights to or use of them by the buyer, together with regulations with regard
to the purchase, sale or resale of goods or services, also benefit from the block
exemption provided for in this Commnuniqué, on condition that the intellectual rights
in question directly concern the use, sale or resale, by the buyer or his customers, of
the goods or services which form the substantial subject of the agreement and that
the transfer or use of such intellectual rights does not constitute the essential purpose
of the agreement. However, this exemption is applied concerning the goods or
services which are the subject of the agreement on condition that provisions in
respect of the rights in question do not involve competition limitations which have the
same purposes or effects with those vertical agreements not exempted by this
Communiqué.
Vertical agreements concluded between competing undertakings in the motor
vehicle sector cannot benefit from the exemption granted by this Communiqué.
However, exemption is also applied on agreements between competing
undertakings, which do not have the condition of reciprocity, and on agreements
where
5
a) the provider is the manufacturer and distributor of goods, whereas the buyer
is not the manufacturer but the distributor of the goods competing with the goods
which are the subject of the agreement, or
b) the provider operates at various stages of the maintenance and repair
business, and the buyer does not provide competing services at the stage where he
purchases the maintenance and repair services which are the subject of the
agreement.
Definitions Article 3- In terms of the implementation of this Communiqué; a) Competing undertakings are providers who operate or have the potential to
operate in the same product market. The product market covers the goods or
services which are the subject of the agreement, and those goods or services
considered, in respect of the buyer, to be interchangeable with or substitutable for
them as regards the products’ characteristics, prices and intended use.
b) Non-compete obligation is any direct or indirect obligation that prevents the
buyer from manufacturing, purchasing, selling or reselling goods or services
competing with the goods or services which are the subject of the agreement.
Furthermore, taking as the basis the purchases of the buyer in the preceding
calendar year, any obligation imposed on the buyer directly or indirectly, aimed at
purchasing, from the provider or another undertaking to be designated by the
provider, more than 30% of the goods or services in the relevant market, which are
the subject of the agreement, or of those goods or services which substitute for them,
is also considered as a non-compete obligation. As long as the cost of the brand-
specific sales staff the distributor employs is not covered by the provider, imposing on
the distributor an obligation to employ different sales staff for vehicles of different
brands mean, under this Communiqué, a non-compete obligation. An obligation
imposed on the distributor for selling the motor vehicles of other providers in different
sections of the display area in order to avoid confusion between brands does not
mean a non-compete obligation under this Communiqué.
c) Vertical agreements are agreements where two or more undertakings that
operate at different levels of the manufacturing or distribution chain are the parties for
the purposes of the agreement.
6
d) Vertical limitations are competition limitations which are included in a
vertical agreement and which fall under the scope of Article 4 of the Act.
e) Obligation for exclusive provision is a direct or indirect obligation, aimed at
the provider’s selling the goods or services which are the subject of the agreement, to
only one buyer for use or resale by him.
f) Selective distribution system means a distribution system where the provider
undertakes to sell the goods or services which are the subject of the agreement only
to the distributors or authorized services directly, and where these distributors or
authorized services undertake not to sell the said goods and services to unauthorized
distributors and services. However, reserved in this system are the
- right of the authorized services to sell spare parts to independent
undertakings,
- obligation of the provider to meet the requests of the independent
undertakings to access the technical information, diagnostic devices and other
equipments, required software or education which are necessary for the maintenance
and repair of motor vehicles.
g) Quantitative selective distribution system is a selective distribution system
where the provider, when selecting its distributors or authorized services, uses
criteria that directly limit the number of these distributors or authorized services.
h) Qualitative selective distribution system is a system where the provider uses
criteria for the distributors or authorized services, which are only qualitative, are
required by the nature of the goods or services that are the subject of the agreement,
are established and put forward so as to be the same for all candidate undertakings
that apply for participation in the distribution system, are not applied in a
discriminatory manner, and which do not directly limit the number of the distributors
or authorized services.
i) Intellectual rights express all intellectual and industrial rights including the
rights of the owner of the work of art and neighboring rights.
j) Buyer is the undertaking in the position of distributor or authorized service,
such that the undertaking that sells goods or services on behalf of another
undertaking is included.
k) Authorized service is an undertaking which provides maintenance and
repair services for motor vehicles within a distribution system established by the
provider.
7
l) Special service is an undertaking which provides maintenance and repair
services for motor vehicles without participating in the distribution system established
by the provider.
m) Motor vehicle is the one with three or more wheels, intended for use on
highways.
n) Automobile is a motor vehicle used for carrying at most eight passengers
excluding the driver.
o) Light commercial vehicle is a motor vehicle whose maximum loaded weight
does not exceed 3.5 tons and which is used for carrying goods or passengers. In the
event that a certain light commercial vehicle has a model sold above 3.5 tons, all
models of the said vehicle are also considered to be light commercial vehicles.
p) Spare parts are goods which may be installed upon or in a vehicle in order
to replace components of that vehicle, including lubricants required for the use of the
motor vehicle, with the exception of fuel.
r) Original spare parts means spare parts which are of the same quality with
the components used in the manufacturing or assembly of the said motor vehicle and
which are manufactured according to the specifications and standards set by the
provider for the parts used in the manufacturing or assembly or for spare parts. Spare
parts manufactured on the same manufacturing line with the components of the
vehicle are also within this scope. In case it is certified by the manufacturer of the
parts that these parts are of the same quality with the components used in the
assembly of the said vehicle and are manufactured according to the specifications
and manufacturing standards of the manufacturer of the vehicle, they are deemed
original spare parts, until the otherwise is proven.
s) Spare parts of matching quality are parts which must be certified by their
manufacturer to be of matching quality with the components used in the assembly of
a motor vehicle and to be compliant with the obligatory standards required by the
legislation, if any.
t) Undertakings within the distribution system are undertakings which are
authorized directly by the manufacturer or by another undertaking authorized by the
manufacturer for the distribution, maintenance or repair of the goods which are the
subject of the agreement, including the manufacturer.
u) Ultimate user is a natural or legal person who purchases the new motor
vehicle for own use, including financial leasing companies, unless the agreement
8
includes a provision for transfer of ownership or an option for purchase of the vehicle
by2 the expiry of the agreement term.
v) Independent undertaking means the undertakings, special services, repair
device and equipment manufacturers, independent spare part manufacturers and
distributors, technical information publishers, automobile clubs, undertakings that
provide road assistance, undertakings that provide testing services and undertakings
that provide training, which are engaged, directly or indirectly, in the maintenance
and repair of vehicles.
y) Site of unauthorized facility is an address or area where a selective
distribution system member establishes a place of sales, warehouse or delivery point
in addition to the facility it operates from, without the authorization of the provider.
In terms of the implementation of this Communiqué, undertaking, provider,
buyer, distributor and authorized service concepts also include their affiliated
undertakings. In the determination of an affiliated undertaking, the relevant provisions
of the Communiqué on Mergers and Acquisitions Calling For the Authorization of The
Competition Board No. 1997/1 are taken as the basis.
General Conditions of Exemption Article 4- The provisions of the exemption are implemented if the vertical
agreement meets the following conditions, and in case the market share of the
provider in the relevant market where it provides motor vehicles or spare parts or
maintenance and repair services does not exceed 30%, or 40 % for agreements
where quantitative selective distribution is preferred for the distribution of motor
vehicles. There are no market share thresholds for agreements that create a
qualitative distribution system.
For vertical agreements which include an obligation for exclusive provision, the
exemption is implemented in case the market share of the buyer in the relevant
market where it purchases the goods and services which are the subject of the
agreement does not exceed 30%.
Exemption shall apply on condition,
2 İlgili metin yazılırken referans alınan orijinal dokümanda “by” ibaresi yerine “prior” ibaresinin geçmesine karşın, ilgili metinde “anlaşma süresinin sonunda” ifadesi yer aldığından, çevirisi buna uygun olarak gerçekleştirilmiştir.
9
a) that the agreement concluded between the provider and distributor or the
authorized service provides that the provider agrees to the transfer of the rights and
obligations arising from the vertical agreement to another distributor or authorized
service within the distribution system and chosen by the distributor or the authorized
service.
b) that the agreement concluded between the provider and distributor or the
authorized service obliges that, in order to prevent the provider from terminating the
agreement via a notification for annulment because the other party commits behavior
which may not be limited under this Communiqué, the provider must give such
notification in writing and include detailed and objective reasons for the annulment,
c) that the agreement between the provider and the distributor or the
authorized service,
1) is concluded for a minimum of five years and both parties accept to
make the notification six months before the due date of the agreement,
regarding their request for no renewal, which will be contained in the
agreement, or,
2) that the notification period for termination is at least two years for both
parties, in case it is concluded for an indefinite period of time; however, this
period is reduced to at least one year where the provider is obliged by law or
by special agreement to pay appropriate compensation on terminating the
agreement or where the provider ends the agreement because it is necessary
to re-organize the whole or a substantial part of the network.
However this situation does not affect the Parties' right to terminate the agreement in
case the other party does not fulfill one of its main obligations.
The exemption shall apply on condition that the agreement provides for each
of the parties the right to refer disputes concerning the fulfillment of their obligations
stemming from the agreement to an independent expert or arbitrator, without
prejudice to the parties’ right to resort to the court. Disputes relating to the matters
below can be given as examples for this:
a) obligation to provide goods and services,
b) setting or attainment of sales targets,
c) whether the obligation of stock carriage is fulfilled,
d) whether the obligation to provide or use demonstration vehicles is
fulfilled,
10
e) the conditions put forward by the provider as regards the sale of
different brands,
f) whether the prevention to operate within a site of unauthorized facility
limits the ability of the distributor of motor vehicles other than
automobiles or light commercial vehicles to expand its business,
g) whether the reasons indicated in the notification for the annulment of an
agreement justifies the annulment of the agreement.
Limitations Which Exclude Agreements from the Scope of Group Exemption Article 5- The exemption provided for within the framework of this
Communiqué shall not apply to vertical agreements which, in combination or in
isolation with other factors under the control of the parties, directly or indirectly, have
as their objective:
a) the restriction of the distributor’s or authorized service’s ability to determine
its sale price. However the provider is able to impose a maximum or
recommended sale price, provided that this does not amount to a minimum
or fixed price as a result of pressure from or incentive offered by any of the
parties,
b) introduction of the restriction on the territory into which, or of the customers
to whom, the distributor or authorized seller may sell goods or services that
are subject of the agreement, apart from the below cases;
1) the restriction of the active sales by the provider into an exclusive
territory or an exclusive customer group allocated to itself or to another
distributor, provided that it does not cover the sales to be made by the
customers of the distributor or the authorized service,
2) the restriction of sales to end users by a distributor operating at the
wholesaler level,
3) the restriction of sales of new motor vehicles and spare parts to
unauthorized distributors by the members of a selective distribution system in
markets where selective distribution system is applied, provided that it does
not cover the sales to be made by the customers of the distributor or the
authorized service,
11
4) the restriction of the buyer’s ability to sell components, provided for the
purposes of assembling, to customers who aim to use them to manufacture
the same type of goods as those manufactured by the provider,
c) the prevention of exchange among the system members themselves in the
selective distribution system,
d) the restriction of active or passive sales of new automobiles or light
commercial vehicles, spare parts for any motor vehicle or maintenance and
repair services to end users by members of a selective distribution system
operating at the retailer level in markets where selective distribution is used.
The exemption shall also apply to agreements containing a prohibition on a
member of a selective distribution system from operating within a site of
unauthorized facility. However, the application of the exemption to such a
prohibition is subject to Article 6, Paragraph 2, Subparagraph (b);
e) the restriction of active or passive sales of motor vehicles other than
automobiles or light commercial vehicles to end users by members of a
selective distribution system operating at the retailer level in markets where
selective distribution is used. However, the right of the provider to prohibit a
member of the selective distribution system from operating within a site of
unauthorized facility is reserved.
f) the restriction of the distributor’s right to subcontract its obligations related to
maintenance and repair services to authorized services. However the provider
may oblige the distributor to give end users the name and address of the
authorized service or services in question before the conclusion of a sales
agreement, in addition, if any of these authorized services is not in the vicinity
of the sales outlet, to also tell end users how far it is. Such an obligation may
only be imposed provided that similar conditions are imposed on distributors
whose maintenance and repair shops are not on the same premises as their
sales outlets;
g) the restriction of the authorized service’s ability to limit its activities to the
provision of maintenance and repair services and the distribution of spare
parts;
h) the restriction of the sales of spare parts for motor vehicles by members of
a selective distribution system to special services which are to use these parts
for the maintenance and repair of motor vehicles;
12
i) introduction of a restriction, through the agreement concluded between a
provider of original spare parts or spare parts of matching quality, repair
equipment or diagnostic devices or other type of equipment and a
manufacturer of motor vehicles, on the provider’s ability to sell these goods or
services to any authorized or independent distributor, independent
undertaking or end user;
j) prevention of a distributor’s or authorized service’s ability to purchase
original spare parts or spare parts of matching quality from a third undertaking
of its choice and to use them for the maintenance and repair of motor vehicles.
However, a motor vehicle provider may oblige the use of original components
provided by it for repairs carried out under warranty, free maintenance and
vehicle recall work.
k) introduction of restrictions such as those preventing the ability of the
provider of spare parts to place its trade mark or logo effectively and in an
easily visible manner on the components supplied, through the agreement
concluded between a motor vehicle manufacturer and the provider of spare
parts which it uses in the manufacturing of motor vehicles,
The exemption provided for by this Communiqué shall not apply where the
manufacturer of motor vehicles prevents the access of independent undertakings to
any technical information, diagnostic devices and other type of equipment, necessary
software, or training required for the maintenance and repair of motor vehicles or for
the implementation of environmental protection measures.
Such access must include in particular the unrestricted use of the electronic
control and diagnostic systems of a motor vehicle, the programming of these devices
in accordance with the provider’s standard procedures, the repair and maintenance
instructions and the information required for the use of diagnostic devices and
servicing tools and equipment.
Access for independent undertakings should be given precisely and
appropriately without any discrimination and information should be provided in a
usable form. If the relevant item is within the scope of an intellectual property right or
constitutes know-how, access should not be withheld in any abusive manner.
13
Specific Conditions Article 6- With regard to the sale, maintenance and repair services or spare
parts of new motor vehicles, exemption shall not apply to the following provisions
included in vertical agreements:
a) Any direct or indirect non-compete obligation,
b) Any direct or indirect obligation preventing members of a distribution
system from selling motor vehicles or their spare parts provided by
competing providers or from providing maintenance and repair services to
those motor vehicles,
c) Any direct or indirect obligation, which causes the distributor or authorized
repairer not to manufacture, buy, sell, resell motor vehicles or not to
provide repair and maintenance services, after the agreement is
terminated.
As regards the sale of new motor vehicles, the exemption shall not apply to
the following obligations included in vertical agreements:
a) Direct or indirect obligation causing the retailer not to provide leasing
services relating to contract goods
b) Any direct or indirect obligation on any distributor of light commercial
vehicles or automobiles within a selective distribution system, which
prevents opening sales or delivery outlets at other regions where selective
distribution is applied.
With regard to maintenance and repair services or the sale of spare parts, the
exemption shall not apply to any direct or indirect obligation related to the place of
establishment of an authorized repairer where selected distribution is practiced.
Withdrawal of the Exemption Article 7- The Competition Board might withdraw the exemption pursuant to
Article 13 of the Act, where it finds that any agreement provided an exemption with
this Communiqué is established to have effects incompatible with the conditions
regulated in Article 5 of the Act. In this circumstance, the Competition Board shall
request the parties’ opinion in written and/or oral form before giving the final decision. In cases where parallel networks formed by similar vertical restrictions enclose
an important part of the related market, the Competition Board, through issuing a
communiqué, might exclude agreements that include restrictions in the related
14
market from this Communiqué. Such Communiqué shall be in effect within one year
beginning from the date of issue at the earliest.
Calculating the Market Share Article 8- Market share in this Communiqué shall be calculated on a) For the distribution of new motor vehicles on the basis of the volume of
contract goods sold by the provider together with any other goods sold by
the provider which are regarded as substitutable by the buyer in terms of
the products’ characteristics, prices and intended use.
b) For the distribution of spare parts on the basis of the value of contract
goods together with any other goods sold by the provider which are
regarded as substitutable by the buyer in terms of the products’
characteristics, prices and intended use.
c) For the provision of repair and maintenance services on the basis of the
value of the contract services sold by the members of the provider’s
distribution together with any other services sold by these members which
are regarded as substitutable by the buyer in terms of their characteristics,
prices and intended use.
If the number data required for those calculations are not available, value data
may be used or vice versa. If such information is not available, estimations based on
reliable market data may be used. With regard to the implementation of paragraph
two of Article 4, the market purchase volume or the market purchase value
respectively, if they are not available, reliable estimations might be used for the
calculation of market share.
For the implementation of market share thresholds of 40% and 50% which
exist in this Communiqué, the following rules shall apply:
a) The market share shall be calculated on the basis of the data for the
preceding year.
b) The market share shall include goods and services provided to
integrated sellers for the purpose of sale.
c) If the market share is initially not more than 30% and 40%
respectively but subsequently rises above that level without
exceeding 35% and 45% respectively, the exemption shall continue
15
d) If the market share is initially not more than 30% and 40%
respectively but subsequently rises above 35% or 45% respectively,
the exemption shall continue to apply one year following the year in
which the market share threshold was first exceeded.
e) The rights provided by sub-paragraphs (c) and (d) shall not be
combined so as to exceed two years.
Implementation of the Communiqué to Concerted Practices
Article 9- This Communiqué shall apply to concerted practices between undertakings that fall under Article 2.
Legislation Abolished
Article 10- The Communiqué No. 2000/3 and the Communiqué No.1998/3 on Block Exemption Regarding Distribution and Servicing Agreements in Relation to
Motor Vehicles shall be abolished as soon as this Communiqué enters into force.
Temporary Article 1- In order for agreements which benefit from block exemption secured by the Communiqué No. 1998/3 but which do not bear the
conditions provided for in this Communiqué for benefiting from block exemption on
the date of entry into force of this Communiqué to be able to benefit from exemption
granted by this Communiqué, they should be amended such that they meet the
conditions provided for by this Communiqué within one year following the date of
entry into force of this Communiqué. The prohibition provided for in article 4 of the
Act No. 4054 shall not apply to the agreements referred to within this period of time.
Temporary Article 2- Agreements concluded before the effective date of this Communiqué which are still in effect and which bear the conditions regulated in this
Communiqué fall under this Communiqué.
Temporary Article 3- Agreements within the scope of the Communiqué No. 2002/2 instead of the Communiqué No. 1998/3 in spite of being vertical agreements
on distribution, repair and maintenance and spare part sale of automobiles, shall be
evaluated within the scope of Article 2 of this Communiqué. Compatibility of such
agreements shall be realized in accordance with the abovementioned Temporary
Article 1.
16
17
Entry into Force Article 11- This Communiqué shall enter into force on January 1, 2006.
Execution
Article 12- This Communiqué shall be executed by the President of the Competition Authority.