Foreign companies increasingly compete directly with Turkish businesses without necessarily establishing a physical office, subsidiary, or branch in Turkey. A foreign company may sell products into Turkey through an e-commerce platform, advertise directly to Turkish customers, target Turkish competitors through Google Ads, approach their customers, use their commercial materials, or operate through distributors and digital platforms.
This creates an important legal question:
What can a Turkish company do when a foreign competitor engages in unfair commercial practices affecting the Turkish market?
The fact that the competitor is incorporated abroad does not automatically prevent legal action in Turkey.
Where unfair conduct directly affects the Turkish market or the commercial interests of a business established in Turkey, Turkish unfair competition rules may apply. Depending on the circumstances, a Turkish company may seek an injunction, cessation of the unlawful conduct, correction of misleading statements, removal of the effects of unfair competition, damages and other protective measures.
The legal strategy, however, must be designed carefully because cross-border unfair competition cases involve not only the Turkish Commercial Code but also rules on private international law, jurisdiction, intellectual property, digital evidence, competition law and international enforcement.
What Is Unfair Competition Under Turkish Law?
Unfair competition is primarily regulated under Articles 54–63 of the Turkish Commercial Code No. 6102 (“TCC”).
Article 54 establishes the general principle that the purpose of unfair competition law is to ensure honest and undistorted competition in the interests of all market participants.
Commercial practices and conduct affecting relations between competitors, suppliers and customers are unlawful where they are deceptive or otherwise contrary to the principle of good faith.
Article 55 of the TCC provides examples of conduct that may constitute unfair competition.
These include, among others:
- making false, misleading or unnecessarily disparaging statements about competitors;
- making false or misleading statements about one’s own business, products, services, prices or commercial activities;
- creating confusion with another company’s products, activities or commercial identity;
- using misleading comparative advertising;
- exploiting another party’s work products without authorization;
- unlawfully obtaining or using production or business secrets;
- inducing certain contractual breaches;
- failing to comply with legal or customary business conditions in a manner contrary to good faith.
The list is not exhaustive.
A commercial practice not expressly mentioned in Article 55 may still constitute unfair competition where it is deceptive or contrary to the standards of honest commercial conduct under Article 54.
Can Turkish Unfair Competition Law Apply to a Foreign Company?
Yes.
The foreign nationality or foreign place of incorporation of the competitor does not by itself exclude the application of Turkish law.
For disputes involving a foreign element, the applicable law is determined under the Turkish International Private and Procedural Law Act No. 5718 (“MÖHUK”).
Article 37 of MÖHUK specifically addresses unfair competition.
Under Article 37:
claims arising from unfair competition are governed by the law of the country whose market is directly affected by the unfair competition.
The provision further states that where the unfair competition exclusively infringes interests relating to the injured party’s business, the law of the country where that business is located applies.
This rule is particularly important for Turkish companies.
For example, suppose a foreign company based in Germany, the United States, China or the United Kingdom launches an online advertising campaign specifically targeting Turkish consumers and makes misleading claims about a Turkish competitor.
If the effects of that conduct are directly felt in the Turkish market, there may be a strong basis for applying Turkish unfair competition law even though the foreign company itself is incorporated outside Turkey.
Does the Foreign Company Need to Have a Turkish Subsidiary?
Not necessarily.
A foreign competitor may affect the Turkish market without establishing a Turkish subsidiary.
Examples include a foreign company that:
- ships products directly to customers in Turkey;
- sells through a Turkish or international marketplace;
- targets Turkish users through Google or social media advertising;
- operates a Turkish-language website;
- appoints a distributor in Turkey;
- approaches the customers of a Turkish company;
- uses the trademark or commercial materials of a Turkish company online;
- publishes statements concerning a Turkish competitor;
- conducts digital marketing campaigns directed specifically at Turkey.
The absence of a Turkish subsidiary may make service of process and enforcement more complicated, but it does not automatically eliminate a Turkish company’s substantive rights.
When Can Turkish Courts Have Jurisdiction Over the Foreign Competitor?
International jurisdiction is a separate issue from applicable law.
Article 40 of MÖHUK provides that the international jurisdiction of Turkish courts is determined according to the territorial jurisdiction rules of Turkish domestic procedural law.
For tort-based claims, Article 16 of the Turkish Code of Civil Procedure No. 6100 (“HMK”) is particularly important.
It provides jurisdiction to the courts of:
- the place where the wrongful act occurred;
- the place where the damage occurred;
- the place where damage is likely to occur; or
- the residence of the injured party.
Accordingly, if a foreign company’s conduct causes or threatens commercial damage in Turkey, Turkish courts may potentially have jurisdiction even though the defendant has its registered office abroad.
The precise jurisdiction analysis should nevertheless be made on a case-by-case basis, particularly where contracts, jurisdiction clauses, multiple defendants or intellectual property rights are involved.
Which Turkish Court Normally Hears an Unfair Competition Case?
Cases arising under the Turkish Commercial Code are classified as commercial cases regardless of whether both parties qualify as merchants in every situation covered by Article 4.
Unless another court has specific statutory jurisdiction, Commercial Courts of First Instance generally hear commercial disputes under Article 5 of the TCC
However, the position may change where the dispute primarily concerns a registered trademark, patent, industrial design, copyright or another intellectual property right.
For example, if a foreign competitor uses a Turkish company’s registered trademark in a manner constituting trademark infringement, the proceedings may fall within the jurisdiction of the specialized Intellectual and Industrial Property Rights Courts.
The correct cause of action should therefore be identified before proceedings are commenced.
What Types of Conduct by Foreign Competitors May Constitute Unfair Competition?
Cross-border unfair competition can take many forms.
1. False Statements About a Turkish Competitor
A foreign company may distribute statements alleging that a Turkish competitor:
- sells defective products;
- is financially unstable;
- is not licensed;
- does not comply with industry standards;
- provides inferior services;
- is involved in unlawful activities.
Where such statements are false, misleading or unnecessarily damaging, they may constitute unfair competition under Article 55 of the TCC.
This can occur through:
- emails to customers;
- LinkedIn posts;
- industry publications;
- WhatsApp messages;
- sales presentations;
- distributor communications;
- social media advertising.
A foreign company cannot escape Turkish unfair competition rules merely because the statement was uploaded to the internet from outside Turkey if its commercial effects are directed toward or directly affect the Turkish market.
2. Misleading Advertising Directed at Turkish Customers
Foreign businesses advertising in Turkey must also consider Turkish advertising and consumer protection legislation.
Commercial advertising must be truthful and honest, and advertisers must be able to prove factual claims made in their advertisements. Turkish consumer legislation also prohibits misleading commercial practices.
Examples of potentially problematic claims include:
“Turkey’s Number One Brand”
“The Cheapest Product in Turkey”
“The Most Trusted Company”
“The Only Certified Provider”
“The Best Product Available in Turkey”
Where such claims objectively imply superiority over Turkish competitors but cannot be substantiated, they may create both advertising-law and unfair-competition risks.
3. Using a Turkish Competitor’s Trademark in Digital Advertising
Foreign companies frequently use competitors’ names and trademarks in search-engine marketing.
For example, a foreign company may target the registered trademark of a Turkish competitor as a Google Ads keyword in order to intercept customers searching for that Turkish company.
Depending on the circumstances, such use may raise issues under both Turkish trademark law and unfair competition principles.
Where a registered trademark is involved, the Industrial Property Code No. 6769 contains specific rules governing unauthorized use of trademarks on the internet, including their use as keywords where the statutory conditions are satisfied.
Accordingly, a Turkish company should determine at the beginning whether its strongest claim is based on:
trademark infringement,unfair competition, or separate unlawful conduct supporting both legal theories.
4. Copying Products, Packaging or Commercial Materials
Foreign companies may copy:
- product packaging;
- advertising materials;
- photographs;
- catalogues;
- website layouts;
- technical presentations;
- product descriptions;
- commercial documents.
Depending on the circumstances, this may involve unfair competition as well as copyright, design or trademark infringement.
The crucial question is not simply whether two products look similar.
The court may examine whether the foreign competitor has improperly exploited another company’s commercial efforts, created confusion in the market or taken advantage of materials produced through another company’s investment.
5. Misappropriation of Trade Secrets
Trade-secret disputes are especially common where a former employee, distributor, consultant or commercial partner moves from a Turkish company to a foreign competitor.
Information potentially involved may include:
- customer lists;
- confidential pricing;
- supplier information;
- formulas;
- manufacturing methods;
- commercial strategies;
- unpublished tender documents;
- source code;
- technical drawings;
- internal sales data.
The TCC specifically addresses unauthorized exploitation of production and business secrets within the unfair competition framework.
A foreign company that obtains confidential information through an employee or intermediary may therefore face legal action in Turkey depending on how the information was obtained and used.
6. Systematic Customer Diversion Through Unlawful Methods
There is no general legal rule prohibiting a foreign company from offering its products to the customers of a Turkish competitor.
Competition for customers is lawful.
A Turkish company cannot normally claim:
“They contacted my customers, therefore the conduct is automatically unlawful.”
The legal issue is how those customers were approached.
The situation may change where the foreign competitor:
- uses a confidential customer database;
- makes false statements about the Turkish company;
- uses confidential pricing information;
- impersonates the competitor;
- creates confusion as to commercial affiliation;
- induces contractual breaches through methods contrary to good faith;
- obtains customers through stolen confidential information.
The method, rather than the mere result of losing a customer, is therefore central to the legal analysis.
What Can the Turkish Company Ask the Court to Do?
Article 56 of the Turkish Commercial Code gives an injured business several possible remedies.
A company whose customers, creditworthiness, professional reputation, commercial activities or other economic interests have been harmed — or are threatened with harm — may seek:
Declaration of Unfair Competition
The court may be asked to determine that the foreign competitor’s conduct constitutes unlawful unfair competition.
Cessation of the Unfair Conduct
The Turkish company may request an order preventing the foreign competitor from continuing the unlawful conduct.
This remedy is particularly important where misleading advertising, unlawful customer approaches, copied materials or online statements are continuing.
Removal of the Consequences of Unfair Competition
The court may order the elimination of the situation created by the unfair conduct.
Where misleading statements have been made, correction of those statements can also be requested.
In certain circumstances, measures concerning goods or instruments used in the infringement may also be available.
Compensation for Financial Loss
Where the statutory requirements are met, the injured company may seek compensation for losses caused by unfair competition.
Article 56 also allows the court, in appropriate circumstances, to consider the benefit that the defendant could have obtained as a result of the unfair competition when determining monetary relief.
For example, if a foreign competitor unlawfully uses a confidential Turkish customer list and generates sales as a result, the economic benefit obtained from the conduct may become relevant to the damages analysis.
Non-Pecuniary Damages
Where the relevant legal conditions are satisfied, non-pecuniary damages may also be available, particularly in cases involving serious injury to commercial reputation.
Can the Turkish Company Stop the Conduct Before the Main Case Is Finished?
Yes, and this is often the most important part of the case.
Waiting for a final judgment may provide little practical protection if the foreign competitor is continuing to:
- publish misleading advertisements;
- contact customers;
- use confidential information;
- sell infringing products;
- publish false statements;
- exploit copied commercial materials.
Article 61 of the Turkish Commercial Code specifically authorizes courts to grant preliminary measures in unfair competition cases.
The court may order, depending on the circumstances:
- preservation of the existing situation;
- prevention of unfair competition;
- removal of the consequences of the conduct;
- correction of false or misleading statements;
- other appropriate measures.
The general conditions for preliminary injunctions are regulated under Article 389 of the HMK.
An injunction may be granted where changes in the existing situation could make the right significantly more difficult or impossible to obtain, or where delay could cause serious harm. The court may also, where immediate protection is necessary, grant an injunction without first hearing the opposing party. The applicant must demonstrate its case on a prima facie basis.
This makes preliminary injunctions particularly important in cross-border digital disputes.
Example: Foreign Competitor Runs a Misleading Online Campaign in Turkey
Consider the following scenario.
A Turkish technology company has operated under its commercial identity for several years.
A foreign competitor launches Turkish-language advertisements stating:
“The Only Official and Certified Solution in Turkey.”
It then sends emails to the Turkish company’s customers suggesting that the Turkish company is no longer authorized to provide its services.
If those claims are untrue, the Turkish business should not necessarily wait until it loses dozens of customers.
Depending on the evidence and circumstances, it may seek immediate judicial measures aimed at stopping the advertisements and misleading statements while the main proceedings continue.
Preserve Digital Evidence Before Sending a Warning
One of the most important practical rules in unfair competition litigation is:
Preserve the evidence before alerting the competitor.
A cease-and-desist letter may cause the foreign company to immediately:
- delete advertisements;
- modify its website;
- remove social media posts;
- change product descriptions;
- delete customer communications;
- alter the digital campaign.
Before sending any formal notice, the Turkish company should therefore consider preserving relevant evidence.
Potential evidence may include:
- screenshots;
- URLs;
- advertising records;
- emails;
- WhatsApp communications;
- invoices;
- customer statements;
- website archives;
- social media posts;
- Google search results;
- marketplace listings;
- commercial offers;
- product samples;
- sales records;
- technical logs.
However, screenshots alone may not always provide sufficient evidence of the underlying conduct.
Under Article 400 of the Turkish Code of Civil Procedure, a party may request determination and preservation of evidence where evidence may disappear or become materially more difficult to present later. This may involve inspections, expert examination or witness evidence. In urgent circumstances, evidence may also be preserved without prior notification to the opposing party.
This mechanism can be particularly valuable in online unfair competition disputes.
Should a Cease-and-Desist Letter Be Sent to the Foreign Competitor?
In many cases, yes.
A carefully drafted cease-and-desist notice may demand that the foreign competitor:
- stop the unlawful conduct;
- remove advertisements or content;
- stop contacting customers through unlawful methods;
- cease using confidential information;
- provide confirmation that materials have been deleted;
- correct false statements;
- preserve relevant records;
- provide undertakings against future infringement.
Such a notice may resolve the dispute without litigation.
However, a cease-and-desist notice should not automatically be the first step.
Where there is a substantial risk that evidence will disappear or the infringer will restructure its activities after receiving the notice, evidence preservation or an injunction application may need to come first.
Is Mandatory Mediation Required Before Filing the Case?
This depends on the relief sought.
Turkish law requires pre-action mediation for specified commercial disputes involving monetary claims. The scope of Article 5/A of the Turkish Commercial Code includes commercial lawsuits concerning monetary receivables and compensation claims.
Therefore, where a Turkish company seeks monetary compensation from the foreign competitor, mandatory mediation requirements should be examined before filing suit.
Non-monetary claims such as cessation, prevention or declaratory relief require a separate procedural assessment.
Where monetary and non-monetary remedies are combined in the same proceedings, the mediation strategy should be determined before filing the case to avoid a procedural dismissal.
What If the Unfair Conduct Takes Place Through an Online Platform?
The foreign competitor may operate through:
- an e-commerce marketplace;
- social media;
- a search engine;
- a hosting provider;
- another online intermediary.
Turkish law contains specific provisions concerning service providers transmitting unlawful unfair-competition content.
Under Article 58 of the TCC, a service provider that did not initiate the transmission, select its recipient or select or modify the relevant content is generally treated differently from the party that actually committed the unfair conduct.
However, where the adverse effects are extensive or the potential damage is substantial, a Turkish court may in appropriate circumstances order measures aimed at ending or preventing the unlawful conduct, including temporary removal of content.
This may give the injured Turkish company an important practical route where the foreign company itself is difficult to reach but the unlawful content is being disseminated through an intermediary.
What If the Foreign Company Is Dumping Products Into Turkey?
This is legally different from ordinary unfair competition under the Turkish Commercial Code.
If the problem is that foreign products are exported into Turkey at dumped prices or benefit from prohibited subsidies causing injury to the domestic industry, the relevant mechanism may be the Law No. 3577 on the Prevention of Unfair Competition in Imports.
The Ministry of Trade defines dumping for these purposes as the export price of a product into Turkey being lower than its normal value. The legislation provides for investigations and trade-policy measures concerning dumped and subsidized imports.
Accordingly, a Turkish producer facing dumped foreign imports should not automatically treat the problem merely as an ordinary TCC unfair competition lawsuit.
The appropriate route may instead involve an application to the Ministry of Trade.
What If the Foreign Competitor Is Dominant and Excluding Turkish Competitors?
This may involve another separate area of law: Turkish competition law.
Article 6 of Law No. 4054 on the Protection of Competition prohibits abuse of a dominant position.
Examples may include conduct aimed at preventing competitors from entering a market or making their activities more difficult where undertaken by a dominant undertaking.
Therefore, a foreign company’s conduct may potentially require assessment under several legal regimes:
Unfair competition law — protection against dishonest commercial practices;
Competition law — protection of the competitive structure of the market;
Trade defence law — protection against dumped or subsidized imports;
Intellectual property law — protection of trademarks, designs, patents and copyright;
Consumer and advertising law — protection against misleading advertising and commercial practices.
Choosing the correct legal route is critical.
Can a Turkish Company Take Action Against the Foreign Parent Company?
Potentially, but the corporate structure must first be examined carefully.
The fact that a foreign company owns a Turkish subsidiary does not automatically make the parent company liable for every act committed by that subsidiary.
Likewise, the existence of a Turkish subsidiary does not automatically mean the foreign parent company itself carried out the unfair conduct.
The investigation should establish:
- which legal entity created the advertising campaign;
- who sent the relevant communications;
- which company contracted with customers;
- who controlled the website;
- which company owned the relevant marketplace account;
- who received the resulting revenue;
- whether the Turkish subsidiary was acting independently or implementing instructions from the foreign parent.
Identifying the correct defendant is especially important in international litigation.
What Happens If the Foreign Competitor Has No Assets in Turkey?
Obtaining a favorable Turkish judgment and collecting money under that judgment are separate issues.
Where the foreign company has:
- Turkish bank accounts;
- receivables in Turkey;
- shares;
- inventory;
- a Turkish subsidiary with legally attributable liabilities;
- other executable assets,
enforcement may be considerably easier.
If the defendant has no assets in Turkey, a monetary judgment may ultimately need to be recognized or enforced in the jurisdiction where the foreign company’s assets are located.
Whether this is possible, and under what procedure, depends on the law of the foreign country and any applicable international convention or bilateral arrangement.
For this reason, an effective cross-border litigation strategy should consider enforcement before filing the claim, not after obtaining the judgment.
How Quickly Must a Turkish Company Act?
Time limits under Turkish unfair competition law are relatively short.
Under Article 60 of the Turkish Commercial Code, actions under Article 56 are generally subject to:
one year from the date on which the claimant becomes aware of the right giving rise to the action, and
in any event,
three years from the date on which the right arose.
Where the conduct also constitutes a criminal offence subject to a longer statutory limitation period, the longer criminal limitation period may apply to the civil claim under the conditions specified by law.
Accordingly, a Turkish company should avoid allowing unfair conduct to continue for months while simply collecting informal complaints.
Early legal assessment is particularly important.
A Practical Action Plan for Turkish Companies
When a foreign competitor engages in potentially unfair practices affecting Turkey, the following sequence is generally worth considering.
First, identify the exact conduct.
Determine whether the issue concerns false advertising, customer diversion, trademark use, trade secrets, copied materials, dumping, abuse of dominance or another form of misconduct.
Second, preserve evidence.
Do this before warning the foreign competitor where there is a realistic risk that online or digital evidence will disappear.
Third, determine applicable law and Turkish jurisdiction.
For cross-border unfair competition, MÖHUK Articles 37 and 40 are central to this analysis.
Fourth, identify the correct defendant.
Determine whether responsibility lies with the foreign parent, Turkish subsidiary, distributor, employee, marketplace seller or another entity.
Fifth, consider immediate injunctive relief.
Where the damage is continuing, an injunction may be economically more important than a damages judgment obtained years later.
Sixth, assess parallel remedies.
Depending on the case, this may include trademark proceedings, an advertising complaint, a Competition Authority application, a trade-defence application or platform takedown procedures.
Seventh, evaluate damages and enforcement.
Before starting proceedings against a company with no presence in Turkey, determine how any judgment will ultimately be enforced.
Conclusion
A foreign competitor is not beyond the reach of Turkish law merely because it is incorporated abroad.
Where its conduct directly affects the Turkish market or unlawfully interferes with the commercial interests of a Turkish business, Turkish unfair competition law may provide significant protection.
Under the Turkish Commercial Code, an affected company may potentially seek:
a declaration that the conduct is unlawful,
cessation and prevention of unfair competition,
removal of the consequences of the conduct,
correction of misleading statements,
compensation for losses,
and, where urgent protection is required,
preliminary injunctive relief.
For cross-border disputes, however, the legal analysis should begin before the lawsuit itself.
The company should determine:
Which country’s law applies?
Do Turkish courts have jurisdiction?
Which foreign or Turkish legal entity is responsible?
Can the evidence be preserved?
Can the conduct be stopped immediately?
Where are the defendant’s assets?
Will a Turkish judgment be enforceable where those assets are located?
The answers to these questions usually determine whether an international unfair competition claim will provide effective commercial protection rather than merely a favorable judgment on paper.
Frequently Asked Questions
Can a Turkish company sue a foreign competitor in Turkey?
Potentially, yes. A foreign company’s place of incorporation does not automatically prevent proceedings before Turkish courts. Jurisdiction depends on the circumstances of the dispute. Under MÖHUK Article 40, Turkish international jurisdiction is determined through domestic territorial-jurisdiction rules, and HMK Article 16 recognizes jurisdiction in tort cases at locations including where damage occurred or is likely to occur.
Does Turkish law apply if the foreign company has no office in Turkey?
It may. Under MÖHUK Article 37, unfair competition claims are generally governed by the law of the country whose market is directly affected. Therefore, conduct directed at and affecting the Turkish market may potentially be governed by Turkish law even where the defendant has no physical office in Turkey.
Can a Turkish company obtain an injunction against a foreign competitor?
Yes, where the jurisdictional and substantive requirements are satisfied. Article 61 of the TCC expressly provides for preliminary measures in unfair competition cases, while HMK Articles 389 and following regulate the conditions and procedure for preliminary injunctions.
Is actual financial loss required before action can be taken?
Not necessarily. Article 56 of the TCC also protects businesses whose economic interests are threatened with damage. Accordingly, prevention and cessation may be sought before the full financial loss has materialized.
Can a Turkish company claim damages from a foreign competitor?
Yes, where the relevant statutory requirements are met. The existence of a foreign defendant does not in itself prevent a damages claim. However, the company should consider from the beginning where any final monetary judgment could actually be enforced.
What should a Turkish company do first after discovering online unfair competition?
Usually, the first priority should be preservation of reliable evidence. Online advertisements, listings and posts can be changed quickly. Turkish procedural law provides a formal evidence-preservation mechanism where evidence may disappear or become substantially more difficult to produce later.
Is selling products at a very low price automatically unfair competition?
No. Low pricing itself does not automatically constitute unfair competition. If the issue involves dumped or subsidized imports injuring Turkish domestic industry, the matter may instead fall within Law No. 3577 and Turkey’s trade-defence regime.
Can a foreign company’s conduct also violate Turkish competition law?
Yes. If the issue concerns cartel conduct, restrictive agreements or abuse of a dominant position rather than ordinary dishonest competition between businesses, Law No. 4054 and the Turkish Competition Authority may become relevant.
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