Competition prohibition in the agency and the other monopoly authorizing contracts

Contract terms regarding non-competition obligations, during or after expiry of a contract, are in principle not permissible under the competition law. Nevertheless, certain jurisdictions provide exemptions to such prohibition to the extent that it is beneficial for the market, consumer and the contracting parties. Article 104 of the TCC on monopolies and Article 123 of the TCC on non-competition agreements are closely related with non-competition during contract period. The contracting parties are also under the non-competition obligation during terms of agency, franchise, exclusive distributorship and dealership agreements. Non-competition after expiry of a contract term is first regulated under the TCC (Law no. 6102). Article 123 of the TCC set forth the limits of non-competition obligation in order to protect the weak party, the agent. Article 123 can be applied mutatis mutandis on the similar agreements such as franchise, exclusive distributorship and dealership.