Pricing Algorithms Under The Focus Of The Turkish Competition Authority

Pricing algorithms assist undertakings in making pricing decisions by analyzing current and historical market and customer data, such as supply and demand, competitor prices, and historical trends. For example, in digital markets, many platforms offer tools and algorithms to their third-party sellers to support optimal pricing decisions. While pricing algorithms may benefit consumer welfare by facilitating competition, reducing prices, and increasing efficiency and effectiveness, it may also lead to anti-competitive behavior. In this context, competition authorities worldwide started to research and investigate algorithmic pricing and its impact on competition law. Accordingly, the Turkish Competition Authority ("TCA") also took action on the issue and provided in its Strategic Plan for 2024-2028 that it plans to make further improvements in analyzing algorithm-based violations in competition law.