* The transformation from traditional markets to digital market is fast.

* The digital economy has a new competition world. Each of our digital footprints should be evaluated well.

* Do digital cartels distort competition? We are analyzing those. We are making studies to increase our businesses’ market power.

* We made a contribution of 16.5 billion TL to consumer welfare with our decisions in the past five years.

President of the Competition Authority Prof. Dr. Ömer Torlak visited Aegean Region Chamber of Industry and attended the ordinary meeting of the assembly in May.

President Torlak gave a speech on “Digital Economy, Competition and Competition Authority”. Torlak stated that the transformation from traditional markets to digital market is fast; those undertakings that use and analyze the data better will be more successful.

According to Torlak, undertakings set their marketing strategies through software and algorithms and firms that follow and utilize digital footprints left by customers may move forward to different points. Emphasizing that as the Competition Authority, they are making studies to increase businesses’ competitive power, Torlak said “The number of businesses worldwide will also increase as markets’ competitive power increases. We are trying to improve economic efficiency in competition law in Turkey. Both distribution costs and input costs should decrease so that the market will function effectively. The share of electronic trade in total retail trade is approximately 11-15% in Europe and worldwide. This share is 4.5 -5 % in Turkey. But we can see a fast growth. As you know, recently, Amazon started to operate in Turkey and Alibaba took a decision for operation in Turkey. It is probable that they will carry out their operations in the Middle East through Turkey. A new area is rising in Turkey for our businesses and undertakings. The new area has a peculiar competitive order and each competitive order has its own factors that distort or restrict competition.”

Other highlights from Torlak’s speech is as follows: “The first five firms of the world trade are those that use data among retail, petrol or finance giants. While assessing commercial success, competition law issues play a role. Competition is important as it feeds innovation. Amazon’s share in retail trade in Germany is 25% while its share in total trade is 14%.  This shows that they will have serious market shares in our country in the near future. We should be ready for this. They can easily compete with traditional competitors without significant transportation costs.

We are studying hard for our homework like other competition authorities. Are those digital cartels distorting competition, if so how? Are they using algorithms to prevent competition, prevent entries or cause exits without reasons? We are trying to do our part seriously in this sense.”

Pointing out that the Competition Authority has been working for more than 21 years, President Torlak said “With our 26 decisions taken between 2014 and 2016, we made a contribution of 10 billion TL to consumer welfare. Between 2017 and 2018, we made a contribution of 6.5 billion TL to consumer welfare with 18 decisions. That means in the last five years we see that our 44 decisions totally made a contribution of 16.5 billion TL.”

Torlak added that the Competition Authority is open to all applications and applications may be made confidentially.

Torlak also answered the questions of the participants. After the conference, Aegean Region Chamber of Industry Chairman of the Board Ender Yorgancılar and the Chairman of the Assembly  Salih Esen presented a plaque in remembrance of the event.