Unfair Competition: The Detrimental Effects of Baseless Complaints and Lawsuits on Commercial Reputation
Legal disputes between competing companies are a familiar feature of commercial life. What is less familiar is the line at which a litigation strategy crosses into unfair competition — and the consequences of crossing it.
Constitutional Right, Bounded by Good Faith
Article 36 of the Turkish Constitution guarantees the right to access the courts. But that right cannot be exercised in a way that violates the good-faith rule in Article 2 of the Civil Code.
Filing baseless lawsuits against a competitor — with the purpose of gaining a competitive advantage — constitutes unfair competition.
Definition of Unfair Competition
Article 54 of the Commercial Code defines unfair competition as deceptive or otherwise dishonest behaviour that affects commercial practices and the relationships between competitors.
Targeting the Customer Base
Negative publications directed at a competitor’s customer groups — where the intent is to denigrate the competitor — also amount to unfair competition.
Legal Remedies
A company harmed by unfair competition has several routes available:
- Action to stop the unfair competition — a court order ending the conduct.
- Action to correct the unfair competition — a court order restoring the damaged state of affairs.
- Pecuniary damages — for concrete losses such as lost customers.
- Non-pecuniary damages — for harm to commercial reputation.
Emergency Protective Measures
Where commercial reputation is under clear threat, urgent interim measures can be sought without waiting for the full action to proceed.
Conclusion
Baseless claims and complaints violate the principle of good faith and constitute unfair competition. Targets have effective remedies — stop-and-correct orders combined with pecuniary and non-pecuniary damages — provided they act with the right strategy and at the right time.