Investigation Concerning A Major Internet Service Provider Is Concluded

The Turkish Competition Board (the "Board") announced its reasoned decision (numbered 18-29/488-240) on whether TTNET A.Ş. ("TTNET") violated Article 14 and 16 of the Law No: 4054 on the Protection of Competition ("Law").

The Board initiated an investigation¹ on TTNET whether the undertaking in question abused its dominant position by providing its customers with packages including fixed broadband and paid TV services within Tivibulu New Year Campaign (Tivibulu Yeni Yıl Kampanyası) ("Campaign") pursuant to the investigation report² dated 19.01.2018. The Board's initial analysis on the investigation report was that;

1. TTNET held dominant position in the retail fixed broadband internet services,
2. the Campaign constituted "bundling" with regard to its presentation style,
3. Bundling price did not bear the cost of services thus, bundling caused below cost pricing, but pursuant to effect-based approach, the results of the Campaign did not cause actual market foreclosure. (pazarda fiili kapama),

The Board upon evaluating the additional information provided by the undertaking in relation to their campaign characteristics and concluded that;

1. the information that TTNET provided did not bear the characteristics of which undertakings are obliged to provide within the period to be determined by the Board pursuant to Article 14 of the Law,
2. this information consisted of only not notifying the Board on price raise progressed later,
3. this information was not false or misleading. Moreover, the Board discoursed that this information resulting in favor of TTNET was supporting of this conclusion.

Footnotes

1 By the Board's decision numbered 17-03/25-M

2 2016-2-015/SR

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