While developments in economic literature guiding competition enforcement have gradually exonerated, at least at the outset, most vertical relationships, resale price maintenance ("RPM") remains elusive. Indeed, RPM stands as a contentious area of antitrust law, and it has been consistently featured both as part of authority decisions and academic studies.
Practices maintaining resale prices of economic enterprises operating at lower levels of the supply chain constrain the freedom of the dealers and sellers to set their own prices, usually inflating the product prices and consequently inflicting damage on consumers. Nevertheless, the issue of resale price maintenance brings with it a number of legal and economic challenges since, as a result of this practice, positive outcomes such as efficiency gains – sometimes to the benefit of consumers – can also be generated. Since it has been observed that the uncertainty brought about by this situation has intensified significantly in the last 10-15 years, revealing the approach of the Turkish Competition Authority regarding these practices will provide clarity and predictability in practice.
In the 13th issue of BASEAK CORE Papers series, BASEAK Partner Sahin Ardiyok, together with Associate Professor Emin Köksal presents the historical development of the jurisprudence on resale price maintenance. The findings in this context are presented to the reader in a comparative framework with the practice of the European Union and the United States of America, considered pioneers in terms of such practices.
To download BASEAK CORE Paper No. 13, please click on this link.
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