Turkish watchdog fines tire companies €67m over competition breaches

Ankara – Turkey's Competition Board has imposed administrative fines totalling more than TRY3.63 billion (€67 million) on tire manufacturers and distributors after concluding an investigation into alleged anti-competitive practices in the automotive sector.

The authority examined allegations of "concerted practice regarding price movements", "exchange of competitively sensitive information among competitors" and resale price maintenance.

Furthermore, the investigation looked into dealer region and customer restrictions, discriminatory practices, labour market information exchanges and "no-poaching agreements," said the authority 16 June

According to the board, administrative fines totalling TRY3.63 billion were imposed, comprising TRY497 million resulting from settlement procedures and a further TRY3.13 billion following the investigation.

Brisa Bridgestone Sabanci Lastik Sanayi received the largest penalty, with a fine of TRY1 billion for "engaging in concerted practices regarding price movements,” imposing region and customer restrictions on dealers.

The tire maker was further fined for participating in "anti-competitive exchange of information and/or making no-poach agreements in the labour market."

Goodyear’s Turkish subsidiary was fined TRY672 million for alleged price coordination, dealer restrictions and labour market information exchanges or no-poach agreements.

Meanwhile, Otomotiv Lastikleri Tevzi was fined TRY397 million over price movements and dealer restrictions.

Turkish operations of Hankook and Pirelli were also penalised for engaging in concerted practices regarding price movements, fixing dealer resale prices, imposing region and customer restrictions and participating in labour market information exchanges or no-poach agreements.

Michelin's Turkish subsidiary was fined for engaging in concerted practices regarding price movements.

The board said several companies settled during the investigation, including Petlas, Tatko Lastik and Ustundag Lastik, with settlement decisions resulting in almost TRY500 million in administrative fines.

Prometeon was fined TRY206 million for dealer resale price maintenance, region/customer restrictions and labour-market information exchanges or no-poach agreements.

However, the board found insufficient evidence to fine the company on the separate allegation of concerted practices regarding price movements.

Alongside the financial penalties, the tire makers and suppliers were ordered to introduce measures designed to prevent the indirect exchange of commercially sensitive information through dealers.

These include adding distinctive watermarks to price announcements and ending collective distribution of pricing communications in favour of secure one-to-one portal-based systems.

The companies are also required to incorporate contractual penalty clauses to deter dealers from sharing future pricing information with competing suppliers.