Türkiye’s open, fast-growing economy draws businesses from every market, and with that competition comes the risk of deceptive advertising, copied products and leaked trade secrets. Unfair competition law exists to keep that competition honest. It is not about market dominance or cartels, which fall under separate competition (antitrust) rules enforced by the Competition Authority, but about the day-to-day conduct of one business toward its rivals and its customers. For a foreign company entering the Turkish market, understanding this regime is both a shield and a sword: it protects your brand and know-how, and it gives you legal means to stop a competitor who plays dirty.
The legal framework
Unfair competition in Türkiye is governed by the Turkish Commercial Code No. 6102 (arts. 54-63). This is the core source, and under article 4 cases arising from it are commercial cases whether or not the parties are merchants: a small trader, a global brand and an online seller are all bound by the same standard of honest conduct.
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- Article 54 states the guiding principle: deceptive or otherwise good-faith-breaching conduct and commercial practices that affect relations between competitors, or between suppliers and customers, are unfair and unlawful. This general clause matters because it lets courts reach new forms of misconduct that no list could anticipate, such as fake online reviews or deceptive influencer campaigns.
- Article 55 sets out a detailed, non-exhaustive catalogue of prohibited acts; this is the practical heart of the regime.
- Articles 56-63 cover civil claims, the liability of employers and of press, broadcasting, communication and IT businesses, publication of the judgment, limitation, interim injunctions and criminal liability.
Because the general clause and the specific list work together, a claim can succeed even where the conduct does not fit neatly into one of the listed categories, as long as it breaches the underlying duty of good faith.
Foreign clients often conflate this regime with antitrust. The two are separate tracks with different rules, different forums and different remedies:
| Unfair competition | Competition (antitrust) law | |
|---|---|---|
| Legal source | Turkish Commercial Code No. 6102, arts. 54-63 | Law No. 4054 on the Protection of Competition |
| Typical conduct | Misleading ads, imitation, trade-secret misuse | Cartels, abuse of dominance, merger control |
| Who enforces | Private parties before the Commercial Courts | The Competition Authority (plus private follow-on claims) |
| Core question | Was the conduct deceptive or in bad faith? | Was competition in the market restricted? |
What counts as unfair competition
Article 55 groups the most common violations into recognisable categories. In practice, disputes usually involve:
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- Misleading or disparaging statements: untrue or misleading claims about one’s own products, prices or business, or false, misleading or needlessly hurtful claims about a competitor (art. 55(1)(a)(1)-(2)). Untrue, misleading or needlessly denigrating comparative advertising falls here too (art. 55(1)(a)(5)).
- Inducing breach or termination of contract: inducing customers to breach their contracts with others, offering a rival’s employees or agents undeserved benefits to make them act against their duties, or inducing them to disclose or obtain their employer’s secrets (art. 55(1)(b)).
- Misuse of trade secrets: exploiting or disclosing production or business secrets obtained secretly, without permission or otherwise unlawfully, including secrets carried out by a departing employee (art. 55(1)(d)). This category has a practice of its own: see trade secrets and confidentiality disputes.
- Imitation and free-riding: taking measures that cause confusion with another’s goods, work products or business (art. 55(1)(a)(4)), or taking over another’s market-ready work product by technical reproduction without an appropriate contribution of one’s own (art. 55(1)(c)(3)).
- Unfair standard terms: using pre-formulated general terms that, misleadingly and to the other side’s detriment, depart materially from the applicable statutory rules or provide a distribution of rights and duties materially contrary to the nature of the contract (art. 55(1)(f)).
A rule of thumb for foreign clients: hard competition is welcome, deception is not. Beating a rival on price, quality or service is lawful; winning by lying about them, copying their look, or stealing their know-how is not.
What this means for you
If you are the one harmed, the practical question is rarely “is this immoral?” but “can I prove it fits article 54 or 55, and can I stop it now?” If you are the one accused, the defence usually lies in showing your conduct was accurate, independently developed, or ordinary competitive behaviour, not deception. Either way, the outcome is shaped early, by how quickly and how well the facts are captured.
A former employee’s conduct is often governed by a contractual covenant as well, whose penalty clause is examined in penalty clauses in non-compete covenants.
Remedies available to a claimant
Where a business is harmed, Article 56 gives the court a full toolkit. A claimant may seek an order:
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- establishing that the conduct is unfair;
- prohibiting and stopping the conduct;
- removing the material state of affairs it created (for example, recalling infringing packaging) and, where unavoidable to prevent infringement, destroying the means and goods used;
- correcting false or misleading statements; and
- compensating material damages where there is fault, and moral damages where the conditions of article 58 of the Turkish Code of Obligations are met.
Under Article 59, the court may also, at the winning party’s request, order publication of the final judgment at the losing party’s expense.
As compensation under article 56(1)(d), the court may also award an amount equal to the benefit the defendant could have obtained through the unfair competition, which matters where your own loss is hard to quantify but the rival’s gain is visible. Just as important, interim injunctions under article 61 can be obtained early to preserve the status quo and stop damaging conduct before a final judgment, often the decisive step in fast-moving markets, because a stop order that comes two years too late may protect nothing.
Criminal exposure
Under Article 62, intentionally committing an act listed in article 55, knowingly giving false or misleading information to have one’s offers preferred, deceiving employees to obtain their employer’s secrets, or as employer failing to prevent such an act by staff is punished, on the complaint of a person entitled to sue under article 56, with up to two years’ imprisonment or a judicial fine, unless the act constitutes a more serious crime. Under Article 63, where the act is committed in a legal entity’s business, this applies to the organ members or partners who acted or should have acted for it. Civil and criminal proceedings can therefore run in parallel; for a respondent, this is a reason to take even an informal cease-and-desist letter seriously.
Timing and evidence
Two points decide most cases.
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First, limitation: under article 60, claims become time-barred one year after the claimant learns that they arose, and in any event three years after they arose; a longer criminal limitation period under the Turkish Penal Code applies instead where the act is also such a crime. These deadlines run quickly, and the earlier you move, the stronger an interim injunction application will be.
Preserve the evidence the moment you suspect a problem. Screenshot the advertisement, keep the emails, buy and store the copied product, and log who had access to the secret. The file you build early often shapes the case.
Second, evidence: unfair competition disputes turn on documented proof: advertisements, correspondence, product comparisons, and records showing how a trade secret was taken. Because Commercial Courts often refer these questions to an expert panel, a clear, well-organised file does double duty: it supports your injunction and it steers the expert’s conclusions.
For online misconduct, timing is even tighter. A misleading advertisement, a fake review campaign or a copied product listing can be edited or deleted within hours of a warning letter. Where the evidence is digital, we typically secure a notarised determination of the web content (a formal record made by a Turkish notary) before alerting the other side, so the proof survives whatever happens next.
How we help
We advise foreign and domestic businesses on both sides of these disputes:
- assessing whether conduct crosses the line under arts. 54-63, before you commit to litigation;
- applying for interim injunctions to stop ongoing harm;
- pursuing or defending claims for damages, including damages measured by the defendant’s likely gain;
- protecting trade secrets through contracts, warning letters and litigation; and
- coordinating civil and criminal action where deliberate misconduct is involved.
The aim is practical: stop the harm, protect your position, and keep the market fair so that your business can compete on its merits.
Related Practice Areas & Strategic Legal Guides
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- Real Estate & Property Law: Title deed due diligence, foreign property acquisitions, and Land Registry (TKGM) transfers.
- Intellectual Property & Trademark Litigation: Trademark, patent, and copyright enforcement before TÜRKPATENT and IP Courts.
- Personal Data Protection (KVKK/GDPR): VERBİS registration, data inventory mapping, and cross-border data transfer compliance.
- Legal Matters in Istanbul for Foreign Clients and Companies: Full-service commercial and civil advocacy before Istanbul courthouses.