Practices that restricting competition in Oligopoly market: Turkish cement industry case

Cement production is one of the oldest industries in Turkey. For many years, the cement industry was subject to government intervention. After the end of state ownership and control, it was expected to become a competitive industry. However, immediately after the Turkish Competition Authority began operations in 1997, Competition Board has investigated the cement industry several times and imposed substantial amount of fines to cement manufacturers breaching competition rules. Cement industry has still continued to attract the attention of the Board. The aim of this study is to discuss the competition issues in Turkish cement industry. The first chapter reviews the theoretical literature on oligopoly and the formation of tacit collusion. In the second chapter, structural characteristics and damages of cartel agreements are discussed. Second chapter also reviews issues related to combating cartels. In the last chapter the Turkish Competition Board decisions relating to the cement industry have been examined in detail.