The head of Turkey’s competition watchdog warned on Monday that companies are increasingly relying on pricing algorithms, a trend that could trigger anti-competitive behavior such as price fixing.
Birol Küle, president of the Turkish Competition Authority, said the agency is developing preventive mechanisms, including artificial intelligence-powered systems, to detect and counter algorithm-driven violations.
“We are launching preventive mechanisms to address these developments,” Küle told reporters. “In particular, we plan to introduce AI-powered oversight systems to detect and counteract algorithm-driven violations.”
He said that while fines remain an important tool, the agency’s primary mission is to correct market distortions, eliminate barriers to entry, and foster fair competition. “We want to be known not for the penalties we impose, but for our proactive efforts in opening up markets,” Küle said.
He stressed that competition itself is the most effective form of regulation. “Our goal is to establish an environment where healthy competition thrives and new entrants are not blocked by artificial barriers,” he said.
Küle noted that the agency’s decisions are increasingly scrutinized globally, citing a recent 1.4 billion Turkish lira ($35 million) fine against Frito-Lay. The company was found to have engaged in de facto exclusivity in small retail outlets, primarily kiosks and corner stores.
The ruling requires that stores under 200 square meters reserve dedicated space for competing products, with Frito-Lay prohibited from occupying those areas. Küle said similar decisions have been issued in sectors including soft drinks, alcohol, ice cream, fuel, and print media.
Küle warned that algorithmic pricing is making traditional oversight methods obsolete, as systems can automatically adjust prices based on competitors’ actions. In response, the watchdog is developing AI-based counter-audit mechanisms to prevent such covert coordination.
The authority is currently overseeing more than 30 investigations, including probes into Apple, Google, Netflix, Visa/MasterCard, and local digital platform Sahibinden. Other active cases span pharmaceuticals, chemicals, cement, electronics, and casting agencies.
Sector-wide studies are also underway in areas such as mobile ecosystems, red meat, shipping, advertising, port services, and the automotive industry.
Küle highlighted a landmark case this year: the conditional approval of the Tofaş/Stellantis merger. The decision included binding commitments on investment, job creation, and export growth, marking a shift from traditional static analysis to a broader view of competition’s dynamic effects.
“This decision is precedent-setting and will influence both international jurisprudence and economic literature,” he said.
He warned that in the digital era, market dominance has become more opaque but more potent. Companies like Google, Amazon, and Meta gain systemic advantages through data access, algorithms, and network effects, sidelining smaller rivals.
Mergers and acquisitions in key sectors such as finance, energy, food, and media are concentrating power further, Küle added, increasing the risk of abuse.
“Some companies now generate revenues larger than national budgets,” he said. “Their actions shape global competition, not just local markets. That’s why international cooperation between competition authorities is essential.”
Küle concluded by emphasizing that tackling abuse of dominance would remain a top priority for the agency. “As large firms restrict competition, consumer choice shrinks and economic resilience weakens. We will continue to act—both nationally and globally—to ensure fair market practices prevail,” he said.