Turkey: Innovation-Based Analysis of Mergers

Abstract

Innovation can either be viewed by the competition authorities as a parameter that should be protected from the potential negative effects of a transaction, or it can be utilized by the merging parties as part of a defense argument to set off against or abate the anticompetitive concerns raised by the competition authorities. Whenever the notion of innovation causes competition-related concerns, enforcement authorities recognize and acknowledge the importance of innovation in an effort to protect it; yet, whenever arguments are put forth by the parties to the transaction in order to incorporate innovation as a defense, such arguments are met with resistance or they are overlooked. Although competition authorities have recognized the importance of innovation in many of their decisions, we are at a critical turning point for the future of merger control analysis, as it is time for competition enforcement authorities to make an essential change to the high standards applied to the innovation defenses raised by the merging parties in practice, and adjust their enforcement standards to the requirements of the modern global economy.

Note: 'Article published in Concurrences Review, N°1-2019, www.concurrences.com/'.

Keywords: Innovation, Mergers, Turkey, Competition Law

JEL Classification: K21, L40