Turkish Competition Authority Reopens Microsoft Investigation

Turkish Competition Authority Reopens Microsoft Investigation

Turkish Competition Authority (TCA) announced today that they are reevaluating the complaint by Gelecek International regarding Microsoft, Microsoft Turkey, and Microsoft Ireland. Gelecek is a leader in Linux and open source services and accuses Microsoft of undercutting the competition by using its dominant market position.

Gelecek accuses Microsoft of putting pressure on distribution channels, like PC manufacturers and computer department stores, to prevent the promotion and sale of Gelecek products, and severely undercutting prices through discount schemes and rebates. The acts of Microsoft include, if true, forcing distribution channels to ban Gelecek’s logo from brochures, discontinue the sale of Gelecek services, and remove free Open Office and Linux bundles from the computers sold. The channels in question include brands like Vatan, Vestel, Beko, and Escort, among others.

TCA had previously found Microsoft not guilty, in 2005 and in 2007 after the State Council overturned the first decision, in regards to the complaints of Gelecek Inc, and unanimously rejected opening an investigation on both counts. What urged the reversal of this decision in the August 28 meeting is currently unknown, but considering the main justification for the previous decisions was the lack of written proof of Microsoft’s activities, it is possible that new evidence has surfaced.

The other big technology related antitrust case TCA is currently conducts  is looking for abuse of dominant position relating to TTNET and Türk Telekom’s anti-competitive broadband pricing strategies.

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