In the rapidly globalizing world, Competition Authorities are facing very complex, multi-dimensional issues. Although they do not, on their own, have the authority to provide final and comprehensive solutions to all of these issues, the roles and functions they assume are of critical importance. It is generally accepted that competition is among the main determiners of innovation, productivity and economic growth. In this context, competition law and policy function like a “general-purpose regulatory technology” for economic governance, establishing and supporting the legal infrastructure that enables the entirety of the economic system to operate in an efficient, predictable and competition-sensitive manner.

At the same time, digitalization is quickly transforming economic and social order, which directly affects the functioning of competition as well as market balances. The increasing role of digital platforms, the widespread adoption of data-driven business models, and the strengthening of ecosystem structures necessitate a reassessment of existing approaches and tools concerning the functioning of competition.

Today, economic markets have become one of the most important areas of review for competition authorities due to their original structural features. Strong network effects, power based on data ownership, economies of scale and scope and their multi-sided platform structures allows undertakings operating in these markets to acquire strong and lasting market positions in a short time. This situation can make market entry more difficult, decrease competitive pressure among undertakings and lead to a rapid concentration of market structure.

The Turkish Competition Authority (Authority) has been closely monitoring the developments in this field through its sector inquiries, investigations and decisions, as a result of which it gained significant institutional experience and know-how. This expertise constitutes an important basis for gaining a better understanding of the competition issues that emerge in digital markets and for developing effective policy tools to address those issues.

In this framework, the Competition Board has launched a study titled “Competition Policies in the Digital Age,” aiming to assess the relevant accumulation of knowledge in a more systematic framework and to conduct a comprehensive examination of the effects of digitalization on competition law and policy. This study is intended to identify the existing and potential competition issues in the digital markets, to evaluate the intervention tools applied to those issues and to contribute to the processes of policy making.

On the other hand, discussions conducted on a global scale shows that traditional competition law enforcement, which is largely ex-post in nature, may not always be sufficient in the face of the rapid and dynamic structure of digital markets. Accordingly, it is observed that different country practices concerning ex-ante regulations specific to digital markets are becoming increasingly widespread. Ex-ante regulation approaches adopted by various countries including the European Union, United Kingdom and Germany give rise to different models based on rule-based frameworks, principle-based approaches, or the adaptation of existing competition law tools.

These varying approaches to digital markets show that adopting a uniform model when designing regulatory tools is impossible; instead, each country must develop solutions in light of its own economic, institutional and legal structure. However, the global nature of digital platforms necessitates close monitoring of international developments and the reflection of these developments in national policy design processes. Furthermore, the complexity of the emerging issues in digital markets and their rapidly-evolving nature force regulatory approaches to be addressed in a more flexible and dynamic framework. In this context, the importance of a regulatory approach that goes beyond simple rule-making and incorporates continuous monitoring, feedback, and adaptation processes is increasingly growing.

Within the scope of the initiated study, the global outlook of the digital economy, the positions of the undertakings operating in digital markets, and the key trends observed in these markets will be evaluated. In addition, the ex-ante regulatory approaches that have gained prominence in recent years and ex-post interventions under competition law will be examined comparatively, and the effectiveness of regulatory tools will be assessed within the framework of different country practices.

The study will also analyze in detail the next-generation competition issues that emerge in digital markets. Moreover, the applicability and effectiveness of competition law instruments such as sanctions, interim measures and commitment mechanisms in digital markets will be discussed.

The “Competition Policies in the Digital Age Report,” which will be the main output of the study, is intended to evaluate recent developments from an up-to-date perspective while contributing to the reinforcement of the policy framework for digital markets in Türkiye. The report in question will be an updated and expanded continuation of the previously published “Reflections of Digital Transformation on Competition Law” study, re-evaluating the findings of that previous work in light of recent developments and presenting a more comprehensive framework for analysis.