The increase in the use of the internet and the speed of technological developments have deeply affected business models and working principles of undertakings all over the world. This transformation has also reshaped consumer preferences in digital markets. With their features that differ from traditional business models and challenge competition law enforcement, digital markets are in the focus of competition authorities and become the subject of inquiries more frequently. In this context, not only in our country but also on a global scale, answers are sought to the questions of what competitive interventions suitable for the structure and functioning of digital markets can be and how competition law and policy can be shaped in the near future.
The Competition Authority's experience in digital markets shows that these markets have different characteristics from traditional markets and it may be relatively difficult to define the relevant markets in existing and future inquiries in these markets; to determine the market power of the undertakings in these markets correctly; to show the infringing behavior within the framework of a theory of harm correctly and to design the appropriate and effective legal solution for the infringement because digital markets are characterized by strong network effects, power based on data ownership, the tendency to evolve, high barriers to entry and expansion, undertakings reaching extraordinary sizes quickly and easily shifting their activities to different sectors, and hosting dozens of different business models. The combination of all these features universally affects and often complicates competition law enforcement in these markets, and in this respect, leads to the search for new tools in terms of competition law enforcement.
Due to the increase in the number of internet users in terms of the population of our country and the time spent on the internet, these users encounter undertakings operating in digital markets intensively at every stage of daily life, as a result of which consumers/users are effected more by the actions of these technology undertakings that limit and/or may limit competition. In addition to the possible effects on consumers, there is a risk that investments, the incentive to innovate and the competitive structure of digital markets will be adversely affected by these actions.
For this purpose, the study carried out by the Competition Authority about the enforcement of Turkish competition law in digital markets and the difficulties encountered in these markets, and therefore the policy changes needed for these markets has taken its final form. Anticipating that interaction and feedback will contribute to this study, which concerns many shareholders from consumers to large technology companies and which aims to create a roadmap for the future, it has been decided that this study be shared with the public. By means of the study, it is possible to see Competition Authority’s perspective regarding digital markets, its legal instruments within the scope of the Act no 4054 on the Protection of Competition, its concrete practices in this field, and to shape its targets and vision for the near future.
Click here for the study titled “The Reflections of Digital Transformation on Competition Law” (in Turkish).
Respectfully submitted for the information of the public.