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COMPETITION LAW AND SPORT IN TÜRKİYE

Introduction

In Türkiye, competition law applies to the sports sector, particularly when sports federations or clubs engage in commercial activities.

The Turkish Competition Authority (TCA) (REKABET KURUMU), established on 13 December 1994, can review agreements, decisions, and practices within sports that might restrict competition, including those related to match-fixing, commercial deals, such as media rights, ticketing, and sponsorship, and potential abuse of dominance by sports betting companies (see the Nesine Case below).

Key aspects of competition law and sport in Türkiye:

Federations as Undertakings

Sports federations are considered “undertakings” under competition law when they exercise commercial activities related to the sports that they govern.

Match-Fixing

The TCA has addressed match-fixing, recognising it as a potential violation of competition law, particularly when it involves influencing the outcome of competitions for financial gain.

Commercial Agreements

Competition law also applies to commercial agreements within sports, such as those related to media rights, ticketing, and sponsorship, ensuring that they do not restrict competition unfairly.

Abuse of Dominance

The TCA can investigate and penalise sports betting companies or other entities that abuse a dominant position in the market.

Examples

The TCA has investigated and fined companies, such as Google and Adidas, for alleged violations of competition law.

Enforcement

The TCA has the power to investigate, impose fines, and take other measures to ensure fair competition in the sports sector.

In essence, competition law in Türkiye aims to ensure a level playing field in the sports sector, preventing anti-competitive practices and promoting fair competition amongst market participants.

Nesine Case Overview:

The TCA investigated and fined, on 29 February 2024, Nesine, a major online sports betting platform, for abusing its dominant position in the market (TCA Case No. 24-11/194-78). The TCA found that the Nesine exclusivity agreements with various stakeholders, including sports clubs and tournament organisers, hindered competition by preventing other betting platforms from accessing advertising and sponsorship opportunities.

Here is a more detailed breakdown of the Nesine case:

Dominant Position

The TCA determined that Nesine held a dominant position in the market for fixed-odds betting games offered through virtual dealers.

Exclusivity Agreements

Nesine entered into exclusive agreements related to advertising, sponsorship, and broadcasting with key players in the sports industry.

Abuse of Dominance

The TCA concluded that these exclusive arrangements constituted an abuse of dominance because they limited the ability of Nesine competitors to advertise and secure sponsorship deals, thus restricting competition.

Interim Measures

The TCA also imposed interim measures to prevent further exclusionary practices whilst the investigation was ongoing, including suspending the application of exclusivity clauses in agreements with sports clubs and tournament organisers.

Fine

Nesine was ultimately fined approximately TRY 77.7 million (around Sw. Frs. 1.49 million) for its anti-competitive practices.

Conclusion

The TCA decision in the Nesine Case highlights the importance of preventing abuses of dominant market positions and ensuring fair competition within the Turkish market. The Case also underscores the TCA commitment to using interim measures to address potential harm to competition whilst investigations are in progress.

For further information and advice on competition law and sport in Türkiye, email the Head of our Turkish Law Practice, Att. Gurur Gaye Günal, at gunal@valloni.ch.