The “Procedures and Principles for the Determination, Prevention and Elimination of Price Squeezing” (“Procedures and Principles”), updated with the Board Decision of the Information Technologies and Communication Authority (“Authority”) dated 09.02.2021 and numbered 2021 / DK-SRD / 36, has been approved and published on the official website of the Authority. The said Procedures and Principles will enter into force as of 01.04.2021. The previous “Procedures and Principles Regarding the Determination, Prevention and Elimination of Price Squeezing” (“Old Procedures and Principles”), which entered into force as of 01.07.2014 has been abolished. The content of the said procedures and principles are as follows
1- Legal Basis:
The aforementioned Procedures and Principles have been drafted on the basis of sub-clauses (a), (d), (ı) and (k) of Article 4 and Articles 6, 7, 13, 14, 20 and 60 of the Electronic Communication Law published in the Official Gazette dated 10.11.2008 and numbered 27050 (Repeating), Article 10 of the Market Analysis Regulation published in the Official Gazette dated 27.11.2012 and numbered 28480, Articles 5, 7 and 11 of the Access and Interconnection Regulation published in the Official Gazette dated 08.09.2009 and numbered 27343, and Articles 5, 15 and 17 of the Tariff Regulation published in the Official Gazette dated 12.11.2009 and numbered 27404.
2- Regulation:
The said procedures and principles aim to provide and protect effective and sustainable competition. For this purpose, the procedures and principles are determined regarding the prevention of price squeezing in wholesale and retail tariffs and the measures to be applied if they involve price squeezing by an undertaking with effective market power and / or a partner, affiliate or partnership operating within the same control structure in a vertically related market which are subject to price squeezing obligation within the scope of the relevant market analysis.
The provisions regulated within this scope are as follows:
- Prerequisites for the application of price squeeze obligation and its analysis,
- Scope of the price squeezing analysis,
- Implementation of price squeezing analysis,
- Providing necessary information and documents for price squeezing analysis,
- Information on the model to be used in price squeezing analysis,
- Calculation of retail level costs to be used in price squeezing analysis,
- Calculation of wholesale costs to be used in price squeezing analysis,
- Performing price squeezing analysis,
- Administrative Sanctions,
- Current Tariffs of Undertakings with Effective Market Power in Relevant Markets.
3- The Amendments Pursuant to the New Procedures and Principles
In the Procedures and Principles that entered into force in 2014, the Elements to be the Basis of Price Squeezing Analysis and Model was structured as a single annex covering all services in which a single price squeezing analysis was applied. In the newly published Procedures and Principles, the procedures and principles of the price squeezing analysis to be applied to Fixed Voice Services Offered at Retail Level and Broadband Internet Services Offered at Retail Level have been structured in two separate annexes.
As per the New Procedures and Principles while the regulations within the scope of Fixed Voice Services Offered at Retail Level have not been amended, the procedures and principles regarding Broadband Internet Services Offered at Retail Level have been amended.
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