As nations across the globe look to address a perceived asymmetry of power in digital markets, Turkey has begun considering approaches for the regulation of large digital platforms. Through a Draft Amendment to Law No. 4054 of the Protection of Competition, regulators hope to lessen competitive harm in the market for digital services while ensuring the preservation of positive economic impacts of digital access.
Up to this point, the European Union has been the world leader in regulating digital competition, having enacted the Digital Markets Act (DMA) in 2022. The law is now in the implementation phase, leaving the world to watch and assess whether the European approach successfully increases competition or boosts economic growth.
Meanwhile, in the United States, Congress effectively rejected the opportunity to adopt comparable legislation in 2022 by declining to bring the American Innovation and Choice Online Act and Open App Markets Act, the two U.S. bills that most closely resemble the DMA, for a vote. During this time, the U.S. has economically outperformed Europe’s largest economies, with the strength of the tech sector being one contributing factor.
Concerns about the impacts on technological innovation, economic growth, and the consumer-friendly vibrance of digital platforms kept many in the United States from fully embracing the proposal. Additional concerns regarding the low cost of digital tools for entrepreneurs and small businesses further dissuaded adoption. Now, with implementation in Europe proving rocky, the European model is not the only path forward. Not only is there little evidence from the EU that the measure will be effective in promoting competitive growth, but the vagueness of the legislation paired with steep penalties creates a situation that disincentivizes the establishment of digital companies. From Turkey’s perspective, this poses an interesting set of questions regarding how to proceed.
Here, we break down the proposed measures, where they are in the legislative process in the United States and Europe, and concerns regarding implementation.
