Tying practices in Cmpetition Law

An agreement in which seller conditions the sale of an additional product or service other than the object of the agreement, contrary to the legal nature of the agreement or commercial usage, is defined as ?tying agreement?. Such practices are considered as conducts restricting competition and prohibited both in European Union and Turkish Competition Law.Agreements between companies or one-sided conduct of a dominant company may cause tying practices. Selling of tied products in accordance with horizontal agreements (cartel) which restrict competition is a violation of competition. However exemption may be granted for vertical agreements under certain conditions. Thus, a tying condition in a vertical agreement is not always regarded as a violation of competition. Package discounts of dominant companies their tying practices as if these are abuse of dominant position, are also prohibited.Tying practices restrict; purchasers and consumers? freedoms of choice and contract and third party companies? freedom of trade. The most important effect of these practices on competition is exploitation of consumers as a consequence of exclusion of competitors from market. As a result of the fact that exclusionary effects come out with leveraging of market power, tying practices may also cause entry barriers to markets.Companies may claim some justifiable causes for their exclusionary and prohibitive tying practices. Leading causes for these practices are; ?objective justifications? of tying sales and ?commercial usage?. The ?efficiency defense? may also be regarded as a just cause in a certain case.Keywords: Tie-Ins/Tying Arrangement, The Leverage Theory Entry Barriers Package Discounts, Efficiency