On 24 February 2017, Block Exemption Communiqué No. 2017/3 on Vertical Agreements in Motor Vehicle Sector (“Communiqué No. 2017/3”) entered into force upon its publication in the Official Gazette. On 7 March 2017, Guidelines on Explanation of Communiqué No. 2017/3 was also released on the website of the Turkish Competition Authority.
Communiqué No. 2017/3 abolishes Communiqué No. 2005/4, which was applied to the purchase, sale and resale practices in the motor vehicles sector. One of the most significant changes under the new Communiqué is the determination of a single market share threshold system (30%) for exclusivity and quantitative selective distribution systems. Moreover, provisions such as the transfer of contract, justification of termination and arbitrator conditions, which are among the general conditions of the exemption, are not included in Communiqué No. 2017/3. Additionally, in terms of the distribution of new motor vehicles, the restriction of multi-brand distribution structure and opening of additional sales points by the suppliers are not anymore listed as factors preventing the parties from enjoying exemption.
Communiqué No. 2017/3 provides a two-year transition period (to make necessary amendments) to the agreements, which already benefit from the recently abolished block exemption (Communiqué No.2005/4) but cannot fulfil conditions under Communiqué No.2017/3.
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