Data Protection | Articles
Self-Preferencing by Algorithm Manipulations and Use of Third-Party Seller Data
1. The Competition Board (“Board”) has concluded its investigation into DSM Grup Danışmanlık İletişim ve Satış Ticaret A.Ş. (“Trendyol”), a major player among multi-category online marketplaces. According to the allegations, Trendyol leveraged its market dominance in Türkiye by (i) manipulating algorithms and (ii) using third-party sellers’ data to benefit its retail operations, actions which restricted competition and violated Act No. 4054 on the Protection of Competition (“Competition Law”). Initiating the investigation the Board imposed interim measures, consisting of mainly withholding any actions and changes into the algorithms that may benefit Trendyol’s retail operations and withholding of use and share of any data accumulated and aggregated within the online marketplace operations for the benefit of its own retail operations until the final decision is given. Following the investigation, the Board imposed both administrative fines and various obligations on Trendyol to address the violations and restore effective competition in the market. This article examines Trendyol’s business model and sales operations in general, analyses Trendyol's anti-competitive practices, and explores the key findings presented in the investigation decision.
