At the meeting held at the Competition Authority, the Chairman of the Competition Board, Birol Küle, reminded that by making a gentleman’s agreement for the labor market, an investigation was launched by some undertakings to determine whether Article 4 of the Law on the Protection of Competition No. 4054 was violated.

Küle left the floor to the defense committee, stating that parts of Vodafone Telekomünikasyon AŞ and Türk Telekomünikasyon AŞ’ defenses containing trade secrets will be heard in secret session.

The Representative of the Investigation Committee reminded that the Competition Board launched an investigation into the allegation that Article 4 of the Law No. 4054 was violated by making a gentleman’s agreement regarding the labor market.

Stating that during the investigation process, it was examined whether the undertakings involved in the investigation made an “employee temptation agreement on preventing the employment of each other’s employees and restricting employee mobility”, the representative said, “In this context, it has also been observed that there are various vertical commercial relations between some undertakings, and that the employee seduction agreement has vertical relations in question. It was investigated whether it was within the scope of used the phrase.

In this respect, the representative stated that 16 companies operating from e-commerce services to informatics consultancy, from merchandising and marketing to the food industry, from telecommunications to software systems within the scope of the investigation violated Article 4 of the relevant law and that the said actions could not benefit from individual exemption under Article 5. expressed the opinion that punishment should be applied.

The representative stated that there is no need to impose administrative fines, since 21 enterprises operating in various fields from education and consultancy to restaurant businesses, from media internet services to television broadcasting, from game software and marketing to technology services, could not detect violations of Article 4 of the law.

After the representative of the investigation committee, the representatives of the undertakings, about whom an investigation was launched, rejected the allegations and made their oral defenses.

The oral defense of the parties will continue tomorrow.

What are gentleman’s agreements?

The subject of the file is “employee temptation agreements”, in other words “gentleman’s agreements”.

These direct or indirect agreements between employers competing for labor in the labor market can prevent employees from moving between companies and deprive them of job opportunities that offer higher wages and better conditions.

Thus, the competitive structure in the labor market may be damaged by the decrease in the mobility of the labor factor between the enterprises or the artificially inability to find the real value of the wages in return for the labor.

The Competition Authority also aims to ensure a healthy transition of the labor factor between enterprises.

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