Competition Board imposes fines on production companies

The Competition Board has imposed a total fine of 124 million lira on Med Yapım Televizyon ve Filmcilik AŞ and Ay Sanat Prodüksiyon ve Yapım AŞ due to activities that restrict competition. This decision was taken due to the two companies sharing sensitive information regarding employee wages and competition issues in international distribution.

The Competition Authority stated that Turkey's potential in series and content production creates significant economic value in the international market. In this context, it was emphasized that eliminating structures that restrict competition in the international distribution of series is critical for the sector to achieve a fair and effective competitive environment.

An investigation was launched into Med Yapım and Ay Yapım due to the joint distribution of Turkish series abroad through MA Distribution Televizyon ve Filmcilik AŞ (MADD) and the exchange of competition-sensitive information in the labor market. As a result of the investigation, Ay Yapım was fined 76 million lira, and Med Yapım was fined 48 million lira.

The firms provided structural and behavioral commitments to resolve the competition issues arising from international distribution through MADD. These commitments were accepted by the Competition Board and made binding.

It was announced that MADD will be liquidated and that Ay Yapım and Med Yapım will not engage in any other joint distribution activities. During the process of transferring MADD to a suitable buyer, the company will be managed by independent directors, and measures will be taken to prevent the flow of competition-sensitive information.

In the event that the commitments are not fulfilled, the transfer of shares in MADD or the liquidation of the company will be brought to the agenda. Ay Yapım and Med Yapım will limit their distribution activities to their own productions, and content will be offered through independent distributors. Furthermore, no agreements containing exclusivity will be made with national channels, actors, or other sector actors, and no provisions that prevent working with other producers will be included in international agreements.

News Source: 12punto