Turkish law does not aim to eliminate competition; it aims to protect fair and undistorted competition. The Turkish Commercial Code (TCC) treats deceptive or otherwise unfair commercial practices that affect competitor relations or supplier–customer relations as unfair competition and provides both civil remedies and, in specific cases, criminal liability.
This article focuses on the most common forms of unfair competition listed in TCC Article 55, explains available lawsuits under Article 56, and highlights practical considerations—especially for modern digital markets.
1) What is “unfair competition”?
The TCC states that the purpose of the unfair competition rules is to secure fair and undistorted competition for the benefit of all market participants. Deceptive conduct or commercial practices that violate the principle of good faith and affect competition or supplier–customer relations are deemed unfair and unlawful.
Importantly, unfair competition is not limited to direct “harm to a rival.” It can also arise from:
- misleading the market or consumers,
- free-riding on a competitor’s work and investment,
- creating confusion about business identity or source,
- misusing confidential business information.
2) Main forms of unfair competition under TCC Article 55
TCC Article 55 provides a non-exhaustive set of typical examples (a practical roadmap for courts and practitioners). Even if a new practice is not listed word-for-word, it may still qualify under the general principle in Article 54.
Below are the most relevant clusters in practice:
A) Misleading advertising, aggressive sales methods, and unfair commercial practices
The TCC explicitly targets unfair advertising and sales methods. Typical examples include:
- Disparagement : Wrong, misleading, or unnecessarily offensive statements aimed at damaging a competitor’s reputation, products, services, or business conduct.
- False or misleading claims about one’s own business: Statements that mislead customers about product quality, pricing, stock, discounts, guarantees, awards, or certifications.
- Creating an unjustified “prestige advantage”: Acting as if you hold awards/diplomas you do not have, or using misleading professional titles/symbols.
B) Creating likelihood of confusion (trade dress / branding / digital identity)
The TCC treats actions that create confusion with another party’s goods, services, or activities as a key unfair competition category (e.g., measures that lead to confusion about source or affiliation).
Common scenarios:
- overly similar packaging, color schemes, slogans, store concepts, or website layouts,
- domain names or social media handles designed to “look like” the competitor,
- marketing narratives implying a non-existent affiliation or continuity.
The legal test is often whether the practice can mislead the average customer about origin, affiliation, or identity, even without exact copying.
C) Inducing breach or termination of contract (disrupting contractual order)
Article 55 also covers systematically inducing another party to breach or improperly terminate existing agreements. This draws a clear line between lawful customer acquisition and unlawful disruption of a competitor’s contractual network.
Typical examples:
- targeting a competitor’s dealer network with inducements designed to trigger breach,
- poaching key staff with tactics aimed at undermining the rival rather than lawful recruitment,
- orchestrating coordinated contract terminations to “collapse” a competitor’s distribution model.
D) Unauthorised exploitation of another’s work results (free-riding)
The TCC framework also addresses unfair advantage gained through exploiting another’s work product and investment.
Practical examples:
- copying catalog content, proposal templates, sales scripts, product photos, or marketing assets as if they were your own,
- using a competitor’s pricing strategy or campaign structure obtained through improper means,
- presenting another’s commercial output as “original” to gain market trust and speed.
Where IP rights (trademark/copyright/design) are involved, additional special legislation may apply in parallel.
E) Trade secrets: unlawful acquisition, disclosure, or use
Misuse of trade secrets (customer lists, production methods, pricing logic, supplier terms, internal strategy) is one of the most litigation-heavy areas. The criminal side of the TCC also addresses particular intentional conduct connected to unfair competition and confidential information.
F) Unfair standard terms and non-compliance with ordinary business conditions
The TCC also points to unfair conduct where a party gains advantage by refusing to comply with ordinary conditions of the trade or by using unfair pre-drafted standard terms in a manner that violates good faith and distorts competitive balance.
3) What civil lawsuits and remedies are available? (TCC Article 56)
Under Article 56, a party whose economic interests are harmed—or who faces a concrete risk of harm—may seek:
- declaratory relief (determination that the act is unfair),
- injunction (cessation/prevention),
- removal of the unlawful result (including correction of misleading statements and, where unavoidable, destruction of tools/goods used in the unfair act),
- damages if fault exists, and moral damages if statutory conditions are met.
The TCC also recognizes that affected customers may bring certain claims, and that specific professional chambers/associations and consumer-focused organizations may have standing in defined circumstances.
4) Is there criminal liability? (TCC Articles 62–63)
TCC Article 62 provides criminal liability (upon complaint) for certain intentional unfair competition acts—particularly those connected to Article 55 and other specified deceptive conduct—punishable by up to two years’ imprisonment or a judicial fine, if the act does not constitute a more serious offence under another law.
Where the unfair competition act occurs within a legal entity’s activities, Article 63 addresses responsibility for the individuals acting on behalf of the entity and mentions legal-entity-specific security measures in appropriate cases.
5) Unfair competition vs. competition law
Unfair competition under the TCC is primarily a private-law protection framework (civil actions and, in limited cases, criminal liability), whereas competition law is typically enforced via a public-law/administrative mechanism. They may overlap factually, but their procedures and enforcement routes differ. The Competition Authority’s terminology also reflects the protective function of unfair competition rules for affected undertakings.
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