Turkish distribution outfit Madd Entertainment is to be dissolved or sold as part of a settlement with the Turkish competition authority, with joint owners Medyapim and Ay Yapim hit with fines totaling 123 million Turkish lira.
Rekabet Kurumu, Turkey’s competition regulator, had investigated production outfits Medyapim and Ay Yapim over competition concerns regarding their joint distributor, Madd Entertainment, and allegations that they shared competitively sensitive information on employee wages.
As part of the settlement, Ay Yapim has been hit with a 75.8 million lira fine, with Medyapim having to pay 47.8 million lira. The companies have resolved to dissolve or divest from Madd and agreed to no longer engage in joint distribution activities. If the commitment to divest or dissolve is not fulfilled in 12 months, one of the companies will be required to transfer its shares in Madd. In the interim, the distributor will be managed by independent executives. Further, information flow to Ay Yapım and Medyapim will be cut off.
Per the settlement, the outfits can only distribute their own content or engage with indie distributors. They must also refrain from exclusive agreements with channels, actors, casting agencies, writers, directors, or independent distributors. In addition, they will not impose exclusivity clauses that prevent buyers from entering into agreements with other producers or distributors from Türkiye.
“Turkey is one of the world leaders in TV series exports,” the authority said. “With this decision, structures that distort competition will be removed, and the sector’s international power will increase, a fairer competitive environment will be created, new opportunities will arise for creative teams and independent distributors [and] international revenues will grow in a more sustainable manner.”
