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The Turkish Competition Authority (“Authority”) completed its sector inquiry carried out regarding e-marketplace platforms, which are evaluated as the most important players of the e-commerce market, and has published the long-awaited E-Marketplace Platforms Sector Inquiry Final Report (“Report”).

The Report initially analyzes the development of e-commerce in the world and Turkey together with the factors affecting this development as well as the effect of e-marketplaces on the mentioned development including their market position. Afterwards, competition conditions in the e-marketplaces are evaluated in the light of parameters such as consumer and seller profiles, multi-category product groups, market shares and concentration levels and scope of the activities in the market.

The following parts of the Report introduce fundamental economic characteristics of the e-marketplaces such as network externalities, multi-access, economies of scale and scope, double-sidedness, and data-based processing. Competition problems arising from behaviors of e-marketplaces have been analyzed within the scope of inter-platforms competition, intra-platform competition and concerns regarding the customers.

The result part of the Report states that progress made in the e-marketplaces market constitutes an important market failure and it says it is possible to conclude that the course of events making clear the market share asymmetry may trigger merger and acquisitions transactions. It is also evaluated that the mentioned progress shows the importance of intervening with the market with the correct tool and at the correct time.

We think that the Report will enlighten ongoing legislative works regarding the digital markets and following investigations of the Authority.


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