[CONSOLIDATION_METHOD_TITLE] [CONSOLIDATION_METHOD]
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English
oda_MaterialEventDisclosureGeneralAbstract|
Material Event Disclosure General
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Update Notification Flag
Evet (Yes)
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Correction Notification Flag
Hayır (No)
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Date Of The Previous Notification About The Same Subject
21.03.2019, 07.12.2020, 27.01.2023
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Postponed Notification Flag
Hayır (No)
oda_AnnouncementContentSection|
Announcement Content
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Explanations
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Pursuant to our material event disclosures dated 21.03.2019, 07.12.2020 and 27.01.2023, in the negative determination application made to the Competition Authority by Vestel Ticaret AŞ (Vestel Ticaret), a wholly-owned subsidiary of our company, on 14.05.2019, it was requested to allow an agreement to be signed between the parties for Vestel Ticaret to provide after-sales services for existing Whirlpool products in the market due to the decision of Whirlpool Ev Aletleri Pazarlama ve Ticaret AŞ and Whirlpool Beyaz Eşya Sanayi ve Ticaret AŞ (Whirlpool) to terminate their activities in Turkey. In the same period, Whirlpool authorized services filed a complaint with the Competition Authority, claiming that the agreement in question was contrary to the Competition Law. As a result of its preliminary research, the Competition Board, with its decision dated 12.11.2019 and numbered 19-39/612-265; decided to reject the complaints of Whirlpool authorized services and not open an investigation and ruled that the contract between the parties was in compliance with the legislation considering that Vestel Ticaret and Whirlpool, the latter of which terminated its activities in Turkey, were not rival enterprises. In the lawsuit filed by the complaining undertakings requesting the annulment of the said Board Decision, Ankara Regional Administrative Court 8th Administrative Case Chamber decided to annul the Board Decision in question with the decision dated 02.11.2022 and numbered 2022/148 E. and 2022/1272 K. (Appeal Decision) on the grounds that while an investigation should be opened by the Competition Board, making a decision with a preliminary investigation was not sufficient. Following the Appeal Decision, the Competition Authority decided to open an investigation against Whirlpool and Vestel Ticaret with the decision numbered 23-01/11-M. A simultaneous appeal against the said Appeal Decision was made by Vestel Ticaret and Competition Authority to the 13th Chamber of the Council of State, requesting a stay of execution. The 13th Chamber of the Council of State accepted the appeals of the Competition Authority and Vestel Ticaret and decided that the Appeal Decision should be overturned, the Competition Board's decision was in accordance with the law and the file would be sent back to the relevant court to be decided in favor of Vestel Ticaret and Whirlpool, with the decision dated 10.04.2023 and numbered 2023/206 E., 2023/1767 K. The justification of the said decision of the 13th Chamber of the Council of State briefly stated that: (i) The agreement made between Whirlpool and Vestel Ticaret for the provision of after-sales services due to Whirlpool's exit from the Turkish market by terminating its sales activities does not aim to prevent, distort or restrict competition; (ii) It is for the benefit of the consumer that Vestel Ticaret provides after-sales services for Whirlpool products available in the market, and (iii) Considering that Whirlpool and Vestel Ticaret are not competitors due to Whirlpool's exit from the Turkish market it is clearly stated that the agreement between the parties complies with the legislation, leaving no room for doubt. The file, which was re-sent to Ankara 8th Administrative Case Chamber based on the reversal decision of the Council of State, has received the number 2023/1627 E. and the judicial process continues. At this stage, in order to fulfill the requirements of the Council of State's decision to overturn, the investigation initiated against Whirlpool and Vestel Ticaret was terminated by the Competition Authority's decision numbered 23-37/689-238.

This statement has been translated into English for informational purposes. In case of a discrepancy between the Turkish and the English versions of this disclosure statement, the Turkish version shall prevail.