Competition Policy Roundtable at Bilgi University in Turkey
About:
The Turkish Competition Authority (TCA) has moved aggressively in recent months toward a stricter enforcement regime, particularly in its oversight of labor markets and digital platforms. New regulatory tools—including some included in the Annual Presidential Plan for 2025 and proposed amendments to Turkey’s Law No. 4054—would expand the TCA’s authority—in the process, sparking debates about procedural fairness and market impact. On March 20, the International Center for Law & Economics (ICLE) gathered scholars at Bilgi University in Istanbul for an off-the-record conversation about the future of competition enforcement in Turkey and around the world.
Discussions focused on the complexities of regulating innovation. This included, in particular, recent efforts both in Turkey to crack down on so-called “killer acquisitions” and whether such investigations could hinder startup ecosystems. Tensions among Turkish government bodies regarding the TCA’s growing regulatory power were also evident. The discussion underscored the evolving regulatory landscape, where balancing competition and innovation remains a key challenge.
FIVE TAKEAWAYS:
Aggressive Labor-Market Enforcement: The Turkish Competition Authority (TCA) has shifted dramatically toward vigorous enforcement in labor markets, marking a significant departure from previous practices. This has included a surge in investigations and fines related to wage-fixing and no-poach agreements, accompanied by the publication of new guidelines. The TCA’s approach—including the liberal use of dawn raids in the context of resale-price-maintenance (RPM) investigations—has raised concerns about procedural fairness and whether Turkey’s approach has become more stringent than that of the European Commission. This enforcement focus reflects a broader trend of jurisdictions examining input markets and treating labor agreements as potential by-object restrictions.
Heightened Scrutiny of Digital Platforms: As elsewhere, digital platforms face growing regulatory pressure in Turkey, with ongoing investigations into dominance, data practices, and pricing algorithms. Recent cases involving Google, Meta, and Amazon highlight concerns about abuse of dominance, data bundling, and potential collusion facilitated by automated pricing. Proposed reforms to the Turkish Competition Act (Law 4054) are expected to heighten this scrutiny, with ongoing debates surrounding the law’s scope, enforcement, and potential impact on both domestic and international tech giants. This reflects a global trend of adapting competition law to address the unique challenges of digital markets.
But some competition reforms aimed at tech companies have not produced the expected effects. Prominent among these is the “technology exception” to Turkey’s merger-notification thresholds. Created to counter so-called “killer acquisitions,” the exception deems the threshold automatically met when a proposed transaction involves a tech company. Contrary to reformers’ expectations, however, only 14 proposed mergers triggered this provision in 2024.
Stricter Enforcement and Procedural Changes: The TCA has adopted a more assertive enforcement posture across various sectors, as seen in the authority’s growing use of interim measures, revised fining guidelines, and push for rapid interventions. This shift toward quicker enforcement and harsher penalties signals a broader policy change, potentially influenced by public anger about rising prices. The increased use of commitment mechanisms and interim measures has significantly altered the procedural landscape, raising questions about the balance between efficiency and due process. Some participants noted that, at times, these powers appear to have been used more to “discipline” companies than for surgical antitrust intervention. Echoing these concerns, the Ministry of Trade has raised objections to the TCA’s growing authority.
The Evolving Landscape of Regulatory Tools: The evolving landscape of Turkish competition law is exemplified by the recent introduction of both an e-commerce directive and Turkey’s version of the EU’s Digital Markets Act (DMA). While intended to address specific market concerns, these new regulations are also seen as instruments to expand the authority’s reach and advance policy goals unrelated to competition law. In particular, the e-commerce directive—supported by parcel shippers, retailers, and e-banking providers, in part to bar online marketplaces from entering new markets—has been criticized for its technical complexity and potential to stifle market entry, highlighting the challenges of balancing competition goals with other policy considerations. The DMA, meanwhile, is viewed as a powerful tool against large tech companies, although debates linger around its enforcement and designation criteria. Some participants pointed out that the DMA’s emphasis on “fairness” and its lower evidentiary burdens were beginning to seep into other markets.
Debates Surrounding Innovation and Acquisitions: The focus on “killer acquisitions” has sparked debates about the role of acquisitions in innovation and in shaping broader market dynamics. Some argued that prohibiting all acquisitions of innovative startups threatens to hinder innovation, rather than promote it. They noted that many startups design their products with the goal of being acquired, focusing on innovations that are compatible with the business models of larger existing incumbents. Some also questioned the application of Philippe Aghion’s innovation theory in the context of the DMA, with concerns about its interpretation and potential impact on market competition.
