Duyurular

GOOGLE MAY COMPLETELY PULL OUT OF THE TURKISH MARKET

17.12.2019

According to claim, after the decision of Turkish Competition Authority stating that Google causes unfair competition, Google has sent the letter to its business partners. It is mentioned in the letter that Google will stop to licence Android phones to use Google applications in Turkey if the situation is not fixed.

As known, the Turkish Competition Authority held a decision( the details of decision can be found at end of the writing) on 19 September 2018 that Google infringed the article 6 of Law numbered 4054 by using clause in the contracts that Google Search Engine is taken place on the main screen, Google WebView is only appointed component and Google Search Engine is  exclusively downloaded in the devices. In this sense, the Turkish Competition Authority has taken a new decision that Google has not met the obligations in relation with the decision therefore, starting from 7 December 2019 Google has been imposed fine at the rate of 5 per ten thousand of its return in 2018 Turkey. It is equal to 1.5 million TL per a day.

Upon this penalisation, Google has announced by written notice to GSM(Global System for Mobile Communications) operators as of 12 December, Google may cancel licences of the devices which has already being sold in Turkey, and will not to give new licence to the devices which will be introduced to the Turkish Market after the date in question. It is stated that Google Search, Google Play, YouTube, Gmail and other Google applications will not be used in Android Phones in Turkey.

In the notification, Google asked their customers to press on the Minister of Economy and the Head of Turkish Competition Authority through mail/phone by giving their contact information in order to revoke the decision or fix the problem. Otherwise, Google may take a decision to completely pull out of the market. If Google applications are not allowed to be used, GSM firms in Turkey may face important economic loss.

The summary of the related decision is as follows :

The Turkish Competition Authority held the final decision regarding whether the economic integration occurred by Google LLC, Google International LLC and Google Advertising and Marketing Limited Company, mobile operating system and mobile application and the acts about providing services and the contract issued between the economic integration in question and the producer of the devices infringe the law numbered 4054 or not.  The Authority has decided that

  1. The economic integration created by Google LLC, Google İnternational LLC and Google Advertising and Marketing Limited Company is the domination position in the market of the licence mobile operating system,
  2. The acts taken place in the contract issued between Google economic integration and the producer of devices that the Google search engine is determined as default search engine and the Google  search engine is taken place on the main screen; and Google Webview is only chosen  as a tool regarding relevant function breach article 6 of the Law numbered 4054. In addition to these behaviours, the articles included the Revenue Sharing Contracts allowing the Google Search engine to be exclusively downloaded in the devices also infringe the article 6 of the Law numbered 4054.
  3. In this sense, it was held that Google LLC, Google İnternational LLC and Google Advertising and Marketing Limited Company have been penalised conjointly to pay 93.083.422,00 TL.
  4. Even though other responsibilities taken place in the Contracts in relevance with other Google applications do not violate the Law, to provide the publicity of the producer of devices and to avoid probability concerns to providing competition, an article indicating clearly that other rival applications can be downloaded in the devices with Google applications shall be put in the contracts.
  5. To terminate the infringements, and to provide effective competition in the market, it was decided that,
  • In the contracts which is made by google economic integration with who the producer of the devices willing to use Commercial Android Operating System in the devices which are planned to be sold in Turkey;
  • The articles regarded as a condition of licencing which mandate directly or indirectly that Google Search Engine is mandatory to be seen on the man screen shall be removed from the contracts,
  • The terms regarded as a condition of licencing, which allow  Google Search Engine to be appointed as only search engine in the all wireless access points shall be removed from the contracts and no be added any new terms in the contracts allowing Google search engine to be only appointed all search points which may be revealed after the choice of design,
  • The terms regarded as a condition of licencing indicating directly or indirectly that Google Webview is downloaded as assumed and exclusive application shall be removed from the contracts,
  • Google shall not apply any way which may occur the situation banned by these three obligations.
  • In addition to removing from Revenue Sharing Contracts signed with producer of devices, the phrase that rivals of Google Search Engine shall not be downloaded in devices and producers of devices shall not use any products of rivals of Google in any search points, shall be removed from any contracts available.
  1. The changes in contracts Google must do in accordance with liabilities mentioned above shall be certified to Turkish Competition Authority within 6 months after the notification of final decision.

The decision can be appealed to Ankara Administrative Courts within 60 days after the notification of decision.

You can find the decision text (in Turkish) here.  

Should you have any queries and/or remarks, please do not hesitate to contact us.

Kind regards,

Zumbul Attorney-at-Law

info@zumbul.av.tr