The investigation initiated by the Turkish Competition Board (the “Board”) into subscription-based on-demand video platforms has been concluded through the commitment procedure.
The decision is particularly noteworthy in that it (i) addresses exclusivity practices not only from the perspective of content and licensing markets, but also from the perspective of the talent pool, such as actors, directors and screenwriters; (ii) removes restrictions placed on producers’ recourse to and utilisation of government incentives; (iii) provides that the commitments shall be structured so as to encompass the rights to original and commercial musical works associated with content, thereby safeguarding ancillary markets; and (iv) prevents the concentration of essential roles such as producer, casting director and manager within the same person or economic entity through the commitments. We hope you find this briefing of interest.
Within the scope of the preliminary inquiry initiated by the Board against
- the economic unit comprising Netflix, Inc., Los Gatos Turkey Yayın Hizmetleri AŞ, Los Gatos Turkey Medya Eğlence Ltd. Şti. and Los Gatos Turkey Yönetim Destek Hizmetleri Ltd. Şti. (“Netflix”),
- the economic unit comprising The Walt Disney Company Medya Eğlence ve Ticaret Ltd. Şti. and Disney XD Televizyon Yayıncılık AŞ (“Disney+”),
- Exxen Dijital Yayıncılık AŞ (“Exxen”),
- BluTV İletişim ve Dijital Yayın Hizmetleri AŞ (“BluTV”),
- the economic unit comprising Amazon.com Sales, Inc., Amazon.com Services LLC, Amazon Seller Services Private Limited, Amazon Digital UK Limited, Amazon Turkey Perakende Hizmetleri Ltd. Şti. and Amazon Turkey Video Dijital Yayıncılık AŞ (“Amazon”), and
- Gain Medya AŞ (“Gain“),
undertakings providing subscription-based on-demand video broadcast services in Türkiye,[1] the Board examined the activities of the platforms transmitting creative content such as television series, films and documentaries to viewers, as well as the contractual relationships they establish with industry participants such as producers, actors, directors and screenwriters, with a view to determining whether such activities and relationships affect competition in the market.
As a result of the preliminary inquiry, the Board formed the view that comprehensive, long-term exclusivity agreements widely practised in the sector, encompassing both the talent pool and content licensing, may give rise to competition concerns. Accordingly, the Board decided to initiate an investigation against the aforementioned undertakings.[2]
The investigation addressed two main competition concerns:
- Concerns relating to Article 6 of Law No. 4054 on the Protection of Competition (“Law No. 4054”), encompassing allegations that Netflix imposed exclusivity conditions on producers, distributors and copyright holders, concluded exclusive contracts with talent pool such as actors, directors and screenwriters, engaged in discriminatory practices towards producers and talent pool in Türkiye, and favoured its own original productions over those of independent producers on its platform; and
- Concerns relating to whether all parties to the investigation, through exclusive agreements and other anticompetitive practices concluded with content providers and talent pool, infringed Article 4 of Law No. 4054.
The investigation has been concluded by the Board’s acceptance and rendering binding of the commitments submitted by the parties.[3]
The principal commitments submitted by Netflix may be summarised as follows:
- For a period of five years, a specified proportion of Netflix-branded Turkish content shall be produced with production companies that have not previously worked with Netflix,
- For a period of three years, at least one presentation day event shall be organised in each calendar year, and such events shall provide an opportunity for participants that have not previously worked with Netflix to make presentations,
- Project applications shall be assessed within a period not exceeding 120 days, and the reasoned results of the assessments shall be communicated to applicants in writing,
- Exclusivity periods for branded Turkish films and television series shall be shortened; additional opportunities such as participation in overseas distribution revenue and per-episode bonuses shall be afforded to producers,
- The rights to original and commercial musical works associated with content shall be acquired or licensed in such a manner that exclusivity periods are restricted to those determined by the commitments,
- No exclusive contracts shall be concluded with talent pool such as actors, directors and screenwriters,
- No restrictions shall be imposed on the process by which producers have recourse to government incentives,
- No agreements shall be concluded with Turkish producers or distributors that contain non-compete obligations or confer exclusive rights over all of the producer’s content,
- The roles of producer, casting director and manager shall be kept separate during the production process of branded Turkish content, and provisions to this effect shall be incorporated into the producer guidelines so as to ensure that such roles are not assumed by the same person or by persons within the same economic entity.
The commitments submitted by Disney+, BluTV, Amazon, Exxen and Gain may be summarised as follows:
- Exclusivity periods relating to branded and unbranded content shall be limited to maximum periods; mechanisms such as revenue-sharing and cost reimbursement arrangements shall be afforded to producers to allow them to shorten exclusivity periods,
- No contracts containing exclusivity provisions shall be concluded, whether directly or indirectly, with talent pool, and practices producing the same effect shall not be engaged in; in this regard, appropriate care and diligence shall be exercised, and the roles of casting director, producer and manager shall not be vested in persons or companies constituting the same economic entity, and producers shall be notified accordingly,
- Agreements containing non-compete clauses vis-à-vis producers or distributors established in Türkiye or conferring exclusive rights over all content shall be avoided.
[1] The Board’s decision dated 16.01.2025 and numbered 25-02/55-M.
[2] The Board’s decision dated 27.02.2025 and numbered 25-08/185-M.
[3] The Board’s decision dated 30.04.2026 and numbered 26-16/498-181.
