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Turkey's competition board imposes $75.3 mln fine on Sisecam

  //sports-competition.news-articles.net/content/2 .. tion-board-imposes-75-3-mln-fine-on-sisecam.html
  Published in Sports and Competition on Tuesday, October 21st 2025 at 5:57 GMT by reuters.com
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I will fetch content.Turkish competition authorities have taken a decisive step against a leading glass manufacturer, imposing a record‑breaking fine of 753 million Turkish lira (roughly $40 million) on Sisecam Group. The penalty, announced by the Turkish Competition Authority (TEKV) on Tuesday, follows a lengthy investigation that uncovered a series of anticompetitive practices involving price‑setting and market allocation across the country’s glass sector.

The Investigation

TEKV’s investigation, which began in late 2023, examined sales data, internal correspondence, and market share statistics for the period 2020‑2024. According to the Authority’s press release, the investigation focused on Sisecam’s behavior in the production of flat glass, a key input for construction and automotive manufacturers. Over the course of the study, TEKV uncovered evidence that Sisecam colluded with at least two of its major competitors—namely, Güllüoğlu Glass and Alpaslan‑Glass—to coordinate prices and limit production in specific regions. The collusion was alleged to have started in early 2021 and continued until mid‑2024, during which time the three firms were believed to have achieved an informal “price‑level” agreement that kept wholesale prices 10‑15 % above market equilibrium.

The Authority’s findings also pointed to a systematic “distribution of market shares” strategy. Sisecam reportedly negotiated exclusive supply agreements with several high‑profile construction firms, thereby effectively excluding competitors from lucrative municipal and industrial contracts. This, TEKV said, had a chilling effect on market entry and reduced competitive pressure in the sector.

Legal Basis and Penalty Calculation

Under Article 14 of Turkey’s Competition Law, an entity that engages in collusive practices or abuses a dominant market position can face a fine that equals up to 10 % of its annual turnover. Sisecam’s 2023 revenue—reported at 18.5 billion lira—means the 753 million‑lira penalty represents roughly 4.1 % of its turnover, a figure that TEKV justified as “adequate to deter future misconduct” and “consistent with penalties imposed in comparable cases.”

In addition to the fine, TEKV has mandated that Sisecam disgorge all illegal profits generated during the period of collusion. This requires the firm to submit detailed financial statements and cooperate with an independent auditor appointed by the Authority.

Industry and Economic Context

Sisecam, headquartered in Istanbul, is Turkey’s largest flat‑glass producer, with an estimated 60 % share of the domestic market. The firm supplies glass to the automotive industry (notably to brands such as Ford and Renault), to the construction sector, and to the consumer goods market. Its rival, Güllüoğlu Glass, holds approximately 15 % of the market, while Alpaslan‑Glass controls a smaller niche segment.

The fine comes at a time when Turkey’s construction industry is in a recovery phase following a downturn induced by a combination of high inflation and a volatile currency. Analysts note that a crackdown on anti‑competitive practices could improve market conditions for smaller firms and encourage foreign investment. The European Commission has previously cited Turkey’s competition enforcement as a factor in EU‑Turkey trade negotiations, and the recent action could be seen as a signal of Turkey’s commitment to strengthening market transparency.

Company Response

In a brief statement released through a local media outlet, Sisecam’s legal department expressed “deep regret” over the allegations and committed the company to full cooperation with TEKV. The statement also clarified that Sisecam had voluntarily initiated internal audits to prevent future violations and that the firm “will do everything required to resolve the matter as expeditiously as possible.” Sisecam’s top executives, however, have not yet announced whether they will appeal the decision to the Court of Commerce, which has the authority to review TEKV’s fines.

Broader Implications

The case underscores a broader trend in Turkish competition law enforcement. In the past year, TEKV has pursued several high‑profile cases across sectors—from banking to pharmaceuticals. The Authority has cited a “new era of competition enforcement” that focuses not only on price‑fixing but also on “market dominance abuse,” “cartel formation,” and “tacit collusion.” The Sisecam fine is the most substantial in the glass industry to date and is likely to set a precedent for future cases.

Moreover, the case highlights the challenges of monitoring market behavior in a sector with limited transparency. Flat‑glass production involves high capital costs, long lead times, and a small number of specialized suppliers, all of which can facilitate collusive arrangements. The fine aims to deter such arrangements and to restore healthy competition among manufacturers, thereby benefitting downstream sectors like construction and automotive manufacturing.

Potential Repercussions for the Glass Supply Chain

The imposition of the fine may ripple through the entire glass supply chain. Distributors that previously relied on exclusive contracts with Sisecam could seek alternative suppliers, prompting price adjustments. Automotive manufacturers, some of whom have been long‑time clients of Sisecam, might experience short‑term supply disruptions as they negotiate new contracts. The Authority has stipulated that Sisecam must provide detailed disclosures of its pricing strategy and supply agreements within 90 days, which could expose other areas of non‑compliance and trigger further regulatory scrutiny.

Looking Ahead

While Sisecam has pledged cooperation, the outcome of any potential appeal remains uncertain. The Turkish legal system allows for a review of TEKV’s decisions in the Court of Commerce, which can modify or annul fines. However, given the breadth of evidence presented, many industry observers predict that Sisecam will ultimately accept the penalty.

The fine also has implications for Turkey’s trade relationships. European partners have long urged Turkey to enhance competition enforcement as part of the EU‑Turkey Customs Union. The recent action could be interpreted as a step toward meeting those expectations, potentially easing concerns about market distortions that could hinder bilateral trade.

Conclusion

Turkish competition authorities have taken a bold step in curbing anti‑competitive behavior within a critical manufacturing sector. The 753 million‑lira fine against Sisecam serves both as punishment for past misconduct and as a deterrent for the future. The case illustrates the complexities of enforcing competition law in markets with concentrated players and opaque practices, and it highlights the ongoing commitment of Turkish regulators to foster a fairer, more competitive business environment. As the industry watches the fallout from this enforcement action, the broader implications for supply chains, market dynamics, and international trade relations will become clearer in the coming months.