Author: Asli Su Coruk
Introduction
The Competition Board (“Board”) has recently published a reasoned decision in which it evaluated BSH Ev Aletleri Sanayi ve Ticaret A.Ş.’s (“BSH”) request for negative clearance or exemption with regard to its practice of prohibiting authorized dealers from making sales through online marketplaces.The decision is noteworthy as it indicates that the Board does not exempt the practices that entirely restrict the sales of dealers through online platforms.
Information with regard to BSH
BSH is an undertaking operating in the fields of production, import, export, domestic distribution and marketing of small and large household appliances and providing after-sales services. BSH operates in Turkey with the brands Bosch, Siemens, Profilo and Gaggenau. The category of large household appliances includes items such as refrigerators, washing machines, dishwashers and ovens, while the small household appliances category includes vacuum cleaners, irons, food processors and similar devices. As a matter of fact, it is stated in the decision that each product type constitutes an individual relevant product market. BSH carries out the retail sale of the products it produces or supplies under the Bosch, Siemens and Profilo brands through a selective distribution network. Authorized dealers of the Bosch and Siemens brands which are a part of BSH’s distribution system work as exclusive dealers. In other words, these dealers do not sell any products that compete with those supplied by BSH. Authorized dealers have the right to sell BSH products through their own websites and/or marketplaces. In the decision, the Board stated that the main purpose of BSH in establishing a selective distribution system is to protect the brand value and image of BSH products. It is also noteworthy that BSH also sells products via its own websites by giving priority to authorized dealers for the supply of the products.
