January 2025 – The Turkish Competition Authority (“TCA”) ended December with a significant overhaul of its Fines Regulation, the first such update in nearly 15 years.
TCA Overhauls Fines Policy to Combat Anti-Competitive Practices in the Digital Age
Recognising the evolving nature of markets, characterised by innovative business models and shifting consumer preferences, the TCA acknowledges the emergence of new forms of anti-competitive behaviour and the involvement of a wider range of entities. This necessitates a corresponding adaptation of enforcement tools and penalty policies to effectively address these contemporary challenges. The TCA emphasises the growing market power of large technology companies, driven by their control over user data and global reach, which has led to widespread competition violations. Given that the dominance of algorithms and data monopolies negatively impacts digital markets and consumer welfare, a review of the TCA’s penalty policies became crucial. You can find our summary of the new Fines Regulation here.
TCA Issues Landmark Guidelines on Labor Market Competition
Another significant development in December was the publication of the TCA’s long-awaited Guidelines on Competition Infringements in Labour Markets. You can read our analysis of the Guidelines here.
Dive into December Case Updates
1. Google fined USD 140 million for abuse of dominance
The TCA has imposed a fine of TL 2.6 billion (USD 140 million) on Google for abusing its dominant position in the demand-side platform (DSP) services market. The TCA found that Google unfairly favours its own advertising products over those of its competitors. The investigation focused on Google’s practices in the online display advertising and advertising technology services markets.
The TCA determined that Google had engaged in anti-competitive behaviour by:
- Restricting access to YouTube inventory: Google initially limited access to its YouTube inventory to its own DSPs, preventing independent service providers from verifying and measuring YouTube ads.
- Favouring its own products: Google was found to favour its own DSP and supply-side platform (SSP) services within its vertically integrated advertising technology stack.
To remedy these anti-competitive practices, Google has been ordered to grant third-party DSPs equal access to YouTube inventory and to provide non-discriminatory conditions to third-party SSPs.
2. Digital platforms undertake commitments to close their cases
The TCA announced on its website in December that cases involving Meta, Hepsiburada and Çiçeksepeti were closed with commitments. Below is an overview of each case:
- TCA cracks down on Meta’s data practices
The TCA had earlier ruled that Meta’s Threads app violated competition laws by linking user data between Instagram and Threads. After imposing an interim measure to ensure data obtained from both platforms remain separate, and subsequently imposing a significant fine on Meta for not complying with the interim measure (which eventually led to Meta temporarily banning Threads in Turkey), the TCA has accepted Meta’s proposed commitments. These commitments ensure that users can create Threads accounts without linking them to Instagram and that user data from Threads will not be merged with Instagram data unless the user explicitly chooses to do so. With these measures in place, the investigation into Meta has been concluded.
- Hepsiburada agrees to changes following competition probe
Hepsiburada, one of Turkey’s largest e-commerce platforms, has agreed to make changes to its automated pricing tools following an investigation by the TCA. The TCA had concerns that the platform’s previous pricing mechanisms could have restricted competition among sellers. Under the new commitments, Hepsiburada will remove the option for sellers to automatically match the lowest price and will limit the use of automated pricing tools in its algorithms. These changes aim to create a more level playing field for sellers on the platform and protect consumer interests.
- Çiçeksepeti to open marketplace to third-party sellers following competition probe
The TCA has closed its investigation into Çiçeksepeti, a popular Turkish online florist, after the company agreed to a series of commitments. The TCA had previously alleged that Çiçeksepeti was abusing its dominant position by unfairly favouring its own products and limiting the ability of third-party sellers to use its platform. To address these concerns, Çiçeksepeti has committed to reopening its marketplace to third-party sellers in categories such as flowers, edible flowers (bonnyfood), and chocolates and sweets. The company will also implement measures to ensure transparency in search results, allowing consumers to more easily compare products from different sellers.
3. TCA rejects parts of Garanti BBVA’s Bonus program
The TCA ruled that certain provisions of Garanti BBVA’s Bonus loyalty program are anti-competitive and have denied the bank an individual exemption. Notably, the TCA determined that while some aspects of the Bonus program agreements are permissible under competition law—such as:
- multiple banks offering POS terminals to the same merchant
- banks participating in the Bonus program joining other similar programs
- the mandatory use of Bonus cards in Bonus terminals
—the TCA concluded that other provisions excessively restrict competition. Specifically, the TCA found that provisions preventing:
- member businesses from negotiating with multiple Bonus program banks for a one-month period after terminating a contract (given this would result in a restriction of instalment sales)
- bonus member banks from joining other co-branded card programs
- the use of non-Bonus branded POS terminals for Bonus cards
were anti-competitive and should be removed from the agreements.
The TCA has given Garanti BBVA and other participating banks nine months to amend their contracts to comply with the decision. Failure to do so could result in further legal action.
New investigations and oral hearings announced
- Turkish food producer Pure Organic is facing a full-fledged investigation into its alleged resale price maintenance practices.
- Following the annulment of its decision by an administrative court, the TCA has reopened an investigation into Turkish electrical engineering company EAE. The original case accused EAE of making misleading and defamatory statements about its competitor's products to induce customers to purchase its own products.
- The TCA announced in December that in November it had initiated an investigation into the tire production and distribution seg ment of the automotive sector.
- Snack food producer Frito Lay is facing a competition law investigation for allegedly making it difficult for its competitors to do business at retail stores. A hearing to hear Frito Lay's defence will be held on 4 February 2025.
- The oral hearing meeting in the investigation into Meram Elektrik’s potential abuse of its dominant position in the electric distribution market by engaging in discriminatory behaviour in the evaluation of unlicensed electricity generation applications will be held on 14 January 2025.