Competition Authority Launched Inquiry on Online Advertising Sector

The Competition Authority recently announced the launch of an inquiry related to the online advertising sector.

The announcement mentions that the online advertising sector has a complex supply chain which includes various services and suppliers. It is emphasized that the market is in an intricate structure and develops rapidly. As similar as the global practice, the broadcasting sector has gravitated from traditional channels towards digital media in recent years in Turkey. The increase in online advertising has gained  great momentum due to the increase in e-commerce transactions. According to the Competition Authority internet and social media usage habits has made Turkey an important market for advertisers. As stated in the announcement, one of the main reasons behind this sector inquiry is anti-competitive practice concerns due to market power of small number of undertakings in the sector based on their data size and product portfolio.

The announcement was reminicint of another sector inquiry launched by the Competition Authority about e-commerce platforms in July 2020. The Competition Authority had performed an efficient work during the relevant inquiry. We can say that some results reached in the e-Marketplace Platforms Sector Inquiry of Competition Authority and the close link between these two markets led the Competition Authority to this Online Advertising Sector Inquiry.

The Competition Authority aims to meet with decision makers, undertakings, and associations of undertakings in the sector during this sector inquiry and to organize various workshops to identify market and competition problems as well as to find solutions where necessary. Within this scope, the Competition Authority may send a list of questions directly to companies and other persons who are engaged in the online advertising sector. They may also request one-on-one meetings or arrange well-attended meetings where the relevant actors are invited.

In its inquiry, the Competition Authority will aim to understand how the sector functions and what are the structural and/or behavioral competition concerns in the sector. Moreover, they will discuss the competence of the current competition law instruments to respond the problems and to establish effectively competitive environment. They will evaluate possible new instruments and any recommendations, too.