Unfair Competition Law in Turkey: Legal Definition, Remedies and Litigation

Unfair Competition Law in Turkey - Turkish Law Firm Guide

Unfair competition is a serious legal violation that undermines market integrity, damages honest businesses, and distorts consumer perception. In Turkey, unfair competition is regulated primarily under the Turkish Commercial Code (Türk Ticaret Kanunu - TTK), specifically Articles 54 to 63. These provisions protect both businesses and consumers from deceptive practices, misinformation, and exploitation of commercial reputation.

Whether you are a company owner, investor, franchisor, or victim of reputation damage, our Turkish Law Firm provides comprehensive legal support in identifying, documenting, and litigating unfair competition cases. Our English Speaking Turkish Lawyers also handle cross-border cases involving foreign brands and online platforms operating in Turkey.

Legal Definition of Unfair Competition (TTK Article 54)

Article 54 of the Turkish Commercial Code defines unfair competition as:

“Any behavior or commercial practice contrary to honesty, ethics, and good faith that affects the relationships between competitors or between suppliers and customers.”

This includes misrepresentations, defamation, deceptive advertising, exploiting trade secrets, and imitating competitors.

Types of Unfair Competition Recognized in Turkey

According to TTK Article 55, the following actions constitute unfair competition:

  • False or misleading advertising
  • Defamation or denigration of a competitor’s goods or services
  • Unauthorized use of trade secrets
  • Imitating a competitor’s product design, packaging, or brand
  • Undercutting prices in bad faith or offering unfair terms
  • Poaching employees or clients through illegal methods

Our best lawyer firm in Turkey helps clients detect these tactics, issue legal notices, and prepare for potential litigation.

Common Examples in Turkish Practice

In practice, we observe unfair competition disputes in the following areas:

  • Online platforms copying product descriptions, images, or metadata
  • Former employees using client data to open rival businesses
  • Distributors falsely claiming exclusivity to block competitors
  • Franchisees replicating know-how in breach of contract
  • Law firms or consultancies using misleading SEO or awards

Our legal team investigates these incidents using IT forensics, notarized documentation, and expert witness testimony where necessary.

Legal Remedies Against Unfair Competition in Turkey

Victims of unfair competition may pursue several legal actions under TTK Article 56:

  • Lawsuit for prevention: To stop ongoing unfair acts
  • Declaratory lawsuit: To establish that the act is unlawful
  • Correction and publication: Removal of false claims or online content
  • Compensation: For financial loss and loss of reputation
  • Confiscation: Of imitation goods or illegal promotional materials

These remedies are available to both direct competitors and indirectly affected businesses.

Evidence Gathering and Precautionary Measures

Due to the urgency and ongoing nature of many unfair competition cases, the Turkish legal system allows victims to request evidence preservation (tespit davası) and injunctions (ihtiyati tedbir) even before filing the main lawsuit:

  • Evidence Preservation: Court-ordered examination of websites, emails, or materials
  • Injunction: Immediate suspension of infringing advertisements or sales channels
  • Access blocking: Court orders to remove online content (especially in e-commerce)

Our English Speaking Turkish Lawyers file precautionary claims within 24 hours in critical cases, especially in digital environments where damage escalates rapidly.

Unfair Competition in E-Commerce and Digital Markets

With the rise of online sales platforms, unfair competition has taken new forms:

  • Use of competitors’ brand names as Google keywords
  • Copying product pages or technical specifications
  • Fake negative reviews and manipulated SEO
  • Price dumping by newly launched clone websites

We cooperate with domain authorities, content platforms, and IT forensic experts to track digital infringements and file civil and criminal complaints.

Unfair Competition vs. Competition Law in Turkey

It’s important to distinguish between:

  • Unfair Competition (TTK): Civil violations between competitors
  • Competition Law (Law No. 4054): Violations affecting market structure (dominant abuse, cartel formation, etc.)

While unfair competition cases are filed before civil commercial courts, Law No. 4054 violations are investigated by the Turkish Competition Authority (Rekabet Kurumu). Our firm handles both litigation paths based on the nature of the case.

Internal Legal Resources

FAQ: Unfair Competition Law in Turkey

  • Q1: Can I sue for unfair competition without registering a trademark?
    Yes. TTK protects your commercial reputation and business model even if trademarks are not registered.
  • Q2: What is the deadline for filing a lawsuit?
    The general limitation period is 1 year from discovery and 3 years from the violation date.
  • Q3: Can I get compensation for moral damages?
    Yes, especially if reputation damage or malicious intent can be proven.
  • Q4: How do I prove unfair competition?
    Through screenshots, expert reports, sworn affidavits, and court-supervised evidence collection.
  • Q5: Can I stop a competitor’s Google ad campaign?
    Yes, if it uses your trademark or misleads users. We apply for interim injunctions and content takedowns.
  • Q6: Is bad-mouthing on social media illegal?
    Yes. It constitutes defamation and commercial damage under TTK and TCK (Turkish Penal Code).
  • Q7: Can franchisors sue ex-franchisees for unfair competition?
    Absolutely, especially when know-how is replicated or customer lists are misused.
  • Q8: Do I need to warn the violator first?
    No, but sending a cease-and-desist letter is advisable to strengthen your court claim.
  • Q9: Which court handles unfair competition lawsuits?
    Civil commercial courts in the defendant’s jurisdiction or where damage occurred.
  • Q10: Can foreign companies file claims?
    Yes. Foreign entities can sue local competitors under TTK provisions, subject to jurisdictional compliance.

Work with a Turkish Law Firm to Fight Unfair Competition

If your company is facing reputation attacks, customer diversion, trade secret violations, or digital impersonation, our experienced team at ER&GUN&ER Law Firm is ready to act. We handle complex unfair competition litigation, pre-litigation cease-and-desist processes, forensic investigations, and emergency injunctions under Turkish law.

As the best lawyer firm in Turkey for commercial dispute resolution, our English Speaking Turkish Lawyers represent startups, multinational corporations, franchise brands, and digital platforms in every region of Turkey.