Turkiye: Turkish Competition Authority issued conditional order authorising the acquisition of Kartek Holding by Param Holdings International Cooperatief subject to addressing competition concerns (Order No. 24-56/1241-531)

On 27 December 2024, the Turkish Competition Authority conditionally approved the acquisition of sole control of Kartek Holding by Param Holdings International Coöperatief. Kartek operates in system operation and infrastructure supply for the payment services market, while Param is involved in finance, financial technologies, and related services, including infrastructure supply for payment services. The order followed an evaluation of potential vertical effects in the infrastructure supply market for payment services, particularly concerning Kartek Holding's significant market share in authorisation, switch, and card printing data services. The order specifies commitments addressing competition concerns in the payment services market. These include maintaining Kartek as a separate legal entity with no shared board members and restricting Param’s access to Kartek’s customer data through confidentiality commitments and technical safeguards. It also requires ensuring fair contract renewals for Kartek’s customers, and enforcing the commitments for three years with annual independent audits. Additionally, data protection measures must be implemented within 60 days of the Turkish Central Bank’s approval of the transaction.