131 COMPETITION LAW Competitive Concerns in Labor Markets Recently, a full-fledged investigation was initiated against 32 undertakings concerning gentlemen’s agreements in the labor markets (“Labor Markets Investigation”). In the announcement regarding the initiation of the investigation, the Authority stated that the market power of employers regarding the labor markets in recent years has led to a decrease or suppression of employees’ wages, and working conditions remain below competitive levels. Within this scope, it is also mentioned that the Authority considers the issues in the labor markets and the benefits of intervening in these issues with competition law instruments, and aims to preserve the competitive structure of the labor markets. However, it should also be mentioned that the Labor Markets Investigation is not the first case file where the Authority has examined human resources practices, such as wage fixing and non-poaching agreements. When the past Board decisions that examine the issue are evaluated, it is clear that the Authority opines that the competition law aims to protect the buyers and sellers of labor services, just as it aims to protect the free market opportunities of the buyers and sellers of products.1 There is also a prevailing view that wage fixing and non-poaching agreements between competitors have anti-competitive effects similar to horizontal market allocation agreements, and may indirectly lead to fixed wages by limiting the opportunities for employees to switch jobs in the labor market.2 Labor is considered as one of the leading costs in the production process and in this context, labor is at the forefront of purchases made by undertakings in the production process. Therefore, it is possible to indirectly distort competition in the goods and services markets through actions and agreements in the labor market. The natural consequence of these agreements is the limitation on employees’ mobility and the benefits gained by undertakings as a result of this limitation. Employees’ mobility can directly affect the way undertakings operate in the market and, therefore, their market power. As a result, through these agreements, undertakings are able to gain benefits by decreasing their employees’ mobility or suppressing their 1 The Board’s İzmir Konteyner decision No. 20-01/3-2, 02.01.2020. 2 The Board’s Bfit decision No. 19-06/64-27, 07.02.2019.
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