Duration, Cost and Risk Management of Unfair Competition Lawsuits in Turkish Courts

Unfair competition disputes in Turkey have become increasingly common with the growth of e-commerce, franchising and cross-border trade. For both local and foreign companies, understanding the expected duration, cost structure and litigation risks in Turkish courts is essential for making a realistic enforcement strategy.

Under the Turkish Commercial Code (TCC) No. 6102, Articles 54–63 regulate unfair competition. These provisions allow claimants to seek not only damages, but also preventive and corrective remedies such as cessation of unlawful acts, removal of misleading statements and declaration of the unlawfulness of the conduct.

1. Typical Duration of Unfair Competition Proceedings

There is no fixed statutory time limit for unfair competition cases to be concluded in Turkish courts. However, some practical observations can be made:

• First instance proceedings before the commercial courts of first instance usually take approximately 1.5 to 3 years, depending on the workload of the court and the complexity of the case.
• If the judgment is appealed, regional appellate courts may add roughly 1 to 2 years.
• A further appeal to the Court of Cassation (Supreme Court) may extend the overall duration by an additional 1 to 2 years.

In practice, the main time-consuming stages are:

• Expert reports (for example, on confusion between signs, goodwill, market practices or calculation of damages).
• Collection and evaluation of evidence, including digital records, traffic data, accounting documents and market surveys.
• Possible adjournments due to non-attendance of witnesses, late submissions, or changes in court panels.

Because of these factors, many rights holders rely heavily on preliminary injunctions to obtain rapid, temporary protection while the main case is pending.

2. Cost Components and Financial Exposure

The cost of an unfair competition lawsuit in Turkey consists of several elements:

1. Court fees
   • A fixed application fee payable upon filing.
   • In damages claims, a proportional fee calculated over the monetary value of the claim.
   • Various service and postal fees for notifications, including international service if foreign defendants are involved.
2. Expert and other evidentiary costs
   • Fees for court-appointed experts in marketing, accounting or IP, depending on the type of unfair conduct and the requested compensation.
   • Costs for translations, especially in cross-border disputes, and for notarization or legalization of foreign documents.
   • Possible expenses for technical examinations (e.g. server logs, digital forensics).
3. Attorney’s fees
   • Agreed contractual fees between client and counsel, often structured in stages (pre-litigation, first instance, appeal).
   • In addition, the winning party is generally entitled to a statutory attorney’s fee to be paid by the losing party, based on the official minimum fee tariff.
4. Cost shifting
   • As a rule, the losing party bears the court costs and the statutory attorney’s fee of the winning side.
   • In partially successful cases, costs can be apportioned. This creates an additional financial risk for claimants who overstate their claims or cannot substantiate significant parts of their case.

For foreign companies, it is important to budget not only for the initial filing, but also for possible appeal stages, expert opinions and enforcement actions.

3. Litigation Risks in Unfair Competition Cases

Unfair competition claims carry specific legal and practical risks:

• Burden and standard of proof: The claimant must prove the unfair act, its unlawfulness and, for damages, the causal link and amount of loss. Especially in online and digital environments, this often requires sophisticated evidence gathering.
• Uncertain damages: While courts may be relatively willing to grant orders for cessation and removal of unlawful acts, they tend to be more cautious when awarding high damages, especially if financial loss or loss of market share is not clearly documented.
• Counterclaims and reputational exposure: Defendants may file counterclaims (for example, alleging abusive litigation or defamation), and court records are in principle public, which can affect business reputation.
• Injunction risk: Defendants must also consider the possibility that a preliminary injunction may be granted against them, leading to removal of listings, suspension of campaigns or blocking of websites.

4. Risk Management and Strategic Recommendations

Effective risk management requires a combination of preventive measures and litigation strategy:

1. Early case assessment
   • Evaluate the legal basis, available evidence and realistic objectives (injunction, corrective announcement, limited damages, etc.).
   • Consider the impact on ongoing business relations and reputation.
2. Evidence strategy
   • Secure time-stamped screenshots, platform records, correspondence and technical logs before changes occur.
   • Use notarial or trusted timestamping where appropriate to strengthen evidentiary value.
3. Preliminary injunctions
   • In serious or urgent cases, request a preliminary injunction at the start of proceedings to stop the unfair conduct quickly and minimize ongoing damage.
   • Be prepared to provide a security deposit if ordered by the court.
4. Mediation and settlement
   • In many commercial disputes involving monetary claims, mandatory mediation applies before filing a lawsuit. Even beyond this, mediation can be a useful tool to control time and cost exposure.
   • Well-drafted settlement agreements can include non-compete undertakings, corrective measures and agreed compensation.
5. Compliance and internal policies
   • Companies should implement compliance programs that monitor marketing practices, online campaigns, distributor behavior and use of competitor trademarks to minimize the risk of being sued themselves.
   • Regular training of sales and marketing teams on unfair competition rules reduces inadvertent violations.

With realistic expectations about timeframes, transparent budgeting of costs, and a structured approach to risk management, both local and foreign businesses can use unfair competition litigation in Turkish courts as an effective tool to protect their market position and brand value.