In today’s competitive business environment, companies often face challenges beyond ordinary market rivalry. Unfair competition occurs when a business engages in deceptive, unethical, or unlawful tactics to gain an advantage over competitors. In Turkey, this issue is strictly regulated under the Turkish Commercial Code. At ER&GUN&ER Law Firm, our Istanbul commercial lawyers guide businesses in navigating these complexities with legal clarity and strategic advice.
What is Unfair Competition?
Unfair competition is defined in Articles 54 to 63 of the Turkish Commercial Code No. 6102 and supported by precedents under the older Code No. 6762. It includes any act that breaches the principles of good faith, misleads consumers, or damages a competitor’s commercial reputation.
Legal Conditions for Unfair Competition
According to Article 54, the following elements must be present:
- Misleading or unethical behavior that influences customer or competitor relations
- Commercial conduct that violates good faith and honesty rules
Note: The existence of damage is not required. Fault is also not a prerequisite to claim unfair competition. This broadens the scope of legal protection significantly.
Why Is Unfair Competition Law Important?
Unfair competition undermines trust in markets and harms businesses and consumers alike. Turkish law protects commercial ethics, economic order, and the honest efforts of companies. It also preserves consumer rights by prohibiting false claims or unethical promotions.
Examples of Unfair Competition
- Misleading advertisements or marketing
- False claims about a competitor’s products or services
- Unauthorized use of brand names or trademarks
- Violation of business secrets
- Copying products, packaging, or brand identity
Legal Remedies Against Unfair Competition
If you suspect that you are a victim of unfair competition in Turkey, the law provides several remedies:
- Declaratory Action: To establish that unfair competition has occurred
- Cease and Desist Order: To stop the unlawful act
- Correction or Publication: Correction of false statements made to the public
- Damages Claim: For monetary or reputational harm
Actions can be brought not only by affected companies but also by consumers and professional organizations.
What If You Violate Unfair Competition Law?
If your business is accused of unfair competition, immediate corrective actions should be taken to minimize damages and legal liability. Legal consultation with commercial lawyers in Turkey is essential for mitigating risks and addressing potential lawsuits.
Statute of Limitations
The right to file a lawsuit expires 1 year from the date the injured party becomes aware of the violation and the violator, and absolutely 3 years from the date the unfair act occurred.
Unfair Competition vs. Competition Law
While often confused, these are distinct legal fields:
- Competition Law: Focuses on market structures and practices like monopolies or cartels. Overseen by the Turkish Competition Authority.
- Unfair Competition Law: Focuses on individual acts that violate good faith in business-to-business or business-to-consumer relations.
Our commercial law attorneys at Istanbul Lawyer Firm are well-versed in both fields and can assist with compliance and litigation strategies.
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