A Possible Class Action On A Follow-On Basis?

Anyone who is interested in Turkish competition law enforcement knows that the hot topic of these days is the ongoing banking investigation. Since it is one of our principles that not talking on the continuing investigations, we want to make it clear that we do not speculate on this investigation. Instead, we want to share a related and a very important development by basing on recent newspaper reports (they are available here and here in Turkish).

President of the Young Busineesmen Association of Ankara, Mr. Değer, talking to the daily Sabah, stated that they are going to bring an action for damages against banks if the Turkish Competition Authority (TCA) decides that the Act on the Protection of Competition is infringed. Mr. Değer added that they are going to cooperate with Ankara Bar Association on this issue and claim the high interests that their members paid.

Two days later, Ms. Eroğlu, President of the Association for Consumer Protection, told that they are waiting for the TCA’s decision and following the issue closely for their members. Moreover, the report gave a place to statements of Mr. Yücelen, the President of the Young Businessmen Association of Turkey, expressing that many businessmen want to claim their damages.

Finally, the rumor has is that there is also another damage claim against automotive distributors to which the TCA, in 2011, imposed the largest fine ever imposed in a single case (the amount of the fine was around 280 million Turkish liras). All of these developments can be regarded as an indicator of the emergence of the “real” private enforcement in Turkish competition law in the form of compensation claims. However it is my curiosity whether this trend will turn out a successful damage award: although there is a collective reddress mechanism in Turkish law, it is not possible to claim compensation through this collective action. Hence, qualifying these developments as the emergence of the “real” private enforcement may just be my optimism.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s