Investigation from the Competition Board to Trendyol: Fine on the way!

The Competition Board launched an investigation, claiming that Trendyol used competitor data and gained an unfair advantage. As a result of the preliminary investigation it conducted on the allegation that it abused its dominant position in the multi-category e-Marketplace market, it decided to initiate an investigation against the company. As a result of the investigation, the Board reached an opinion on 5 items.

Competition Board requested a fine for Trendyol

The Competition Board launched an investigation into the preliminary investigation question regarding the allegation that DSM Grup Danışmanlık İletişim ve Satış Ticaret AŞ (for short, Trendyol) abused its dominant position in the multi-category e-marketplace market.

The Board examined whether it caused a violation of Article 6 of Law No. 4054. As a result of the investigations, the following conclusion was reached;

1. Trendyol, which is under investigation, is dominant in the multi-category e-marketplace market,
2. Trendyol, by interfering with the algorithm and using the data of third-party vendors selling on the marketplace, unfairly gains advantage in its retail activity, these actions make the activities of its competitors more difficult, and it violates Article 6 of the Law on the Protection of Competition No. 4054,
3. For this reason, an administrative fine should be applied to Trendyol in accordance with the third paragraph of Article 16 of the Law on the Protection of Competition No. 4054,
4. Pursuant to article 9 of the Law, to end the violation specified in article 2 and to ensure effective competition in the market, Trendyol:
   a. Avoiding interference with private label products (Private Label), which it carries out through its own marketplace (www.trendyol.com), through algorithms and coding that will provide an advantage compared to its competitors,
   b. Avoiding the use of all kinds of data obtained and produced/derived from the marketplace activity for private label products related to retail activity and taking all kinds of technical, administrative and organizational measures to ensure this,
   c. Keeping the parametric and structural changes made on the algorithm models used for product sorting and brand filtering purposes within the scope of the marketplace activity for 2 (two) years, with a version and an undeniable accuracy,
   D. Keeping all codes belonging to the algorithms used for product sorting and brand filtering purposes within the scope of the marketplace activity, as well as all codes affecting the algorithms used for product sorting and brand filtering purposes, with a version and an undeniable accuracy for 2 (two) years,
   to. Keeping user access and authorization records and manager audit records for all software used for the execution of business processes within the scope of the marketplace activity for 2 (two) years, the accuracy of which cannot be denied,
   f. Fulfilling the obligations specified in subparagraphs a, b, c, d, e within a reasonable period of time as of the notification of the reasoned decision to the undertaking,
   g. Submitting to the Institution the harmonization measures that he prepared at the latest one month before the deadline granted to him.
   h. Submitting a report to the Agency periodically for a period of five years from the implementation of the first compliance measure and once a year
   obligations must be met,
5. In case Trendyol fails to fulfill the obligations set forth in Article 4 in a timely and complete manner, a daily administrative fine should be imposed pursuant to subparagraph (a) of the first paragraph of Article 17 of the Law on the Protection of Competition No. 4054.
   conclusion and conclusion have been reached.