Türkiye’s competition authority to deploy AI tools to combat algorithmic price-fixing
Watchdog warns of growing digital-era collusion, highlights shift to proactive enforcement and global coordination
ANKARA, Türkiye (MNTV) — Türkiye’s Competition Authority is stepping up efforts to address the growing use of algorithms in price-setting by companies, a trend regulators warn could fuel anti-competitive behavior such as automatic price fixing.
Birol Küle, president of the Turkish Competition Authority, said that new technologies, particularly algorithm-driven pricing systems, are increasingly distorting market dynamics and making violations harder to detect through traditional oversight mechanisms.
“We are launching preventive mechanisms to address these developments,” Küle said. “This includes the deployment of artificial intelligence-based systems to detect and counteract algorithmic collusion.”
Küle stressed that the authority’s core mission is not simply to impose penalties, but to design and implement regulatory frameworks that promote competition, remove market entry barriers, and drive long-term economic growth.
“When competition works properly, it brings far greater value to public welfare than any fine we might issue,” he noted. “Our focus is on creating open markets where fair competition thrives.”
One of the most high-profile actions by the agency this year involved a TL 1.4 billion ($35 million) fine against Frito-Lay.
The company was found to have engaged in exclusive arrangements in traditional retail spaces, preventing competitors from accessing shelf space in shops smaller than 200 square meters.
Under the ruling, Frito-Lay must now ensure designated areas for rival products and refrain from occupying those sections.
Küle said similar rulings have previously been issued in the beverage, fuel, and media distribution sectors, and the watchdog is now extending its scrutiny to digital markets.
The authority is also developing AI-driven monitoring tools in response to the rise of algorithm-based price tracking by firms, which Küle described as a new form of collusion. “We aim to stay ahead of these developments by investing in smart oversight,” he said.
A key decision this year was the conditional approval of the Tofaş-Stellantis merger, which Küle called a landmark ruling.
Approval was contingent on commitments to investment, job creation, and export targets, reflecting a broader shift in competition policy toward dynamic economic impacts rather than static price assessments.
The authority currently has over 30 active investigations involving major global players such as Apple, Google, Netflix, Visa, MasterCard, and Türkiye-based platforms like Sahibinden. Sectors under review include pharmaceuticals, cement, chemicals, electronics, food, and mobile ecosystems.
Küle warned that market dominance in the digital age is increasingly driven by data access, algorithmic control, and network effects—giving tech giants like Google, Amazon, and Meta significant structural advantages.
He emphasized the importance of global cooperation among regulators to counterbalance such concentrated power.
“As dominant firms expand across finance, energy, food, and media, the risk of market manipulation rises,” he said. “This calls for stronger oversight and international alignment to safeguard competition and protect consumer choice.”
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