According to Turkish Competition Authority’s (TCA) press release (English version is here) the Turkish Petroleum Rafineries Co. (Tüpraş), the largest enterprise in Turkey was fined by the TCA TL 412 million (approx. USD 200 million ) for abusing its dominance by “pricing and contractual practices ”. According to the press release it was also decided to send official opinions to Tüpraş on obligation to stop the practices that caused the breach, and to relevant public authorities within the sector on fixing the failure of the price regulation mechanism in the industry in favor of consumers.
The fine of TL 412 million is the highest fine faced by a single company in the TCA’s history, almost equal to 2 times of the fine on Garanti Bank which was the record holder with TL 213 million fine in 2013 for participating in anticompetitive agreements among a number of banks-mentioned in a related post.
Tüpraş, owned by one of the largest conglomerates in Turkey Koç Holding since it was privatized in 2006, is the company controlling all of the refining capacity in Turkey with four oil refineries having processed 22 million tons of crude oil creating USD 26 billion net sales just in 2012 according to its 2012 annual report.
According to the press release while Tüpraş was fined for breach of Article 6 of the Act on The Protection of Competition no 4054, which is on abuse of dominance, it was decided that it and its joint venture Opet (a petroleum distributor company in Turkey) did not breach the Article 4 of the Act on The Protection of Competition no 4054, which is on anticompetitive agreements.
The details of the decision and how the breach was interpreted by the Turkish Competition Board will be appear in the reasoned decision which will -probably- be held here as soon as released.