Competition Authority launches investigation into Google

In a written statement issued by the Competition Authority, it was stated that "a decision has been made to initiate an investigation into Google in accordance with Article 41 of the Law No. 4054 on the Protection of Competition, in order to determine whether Google's billing practices and commercial activities carried out for advertisers and advertising agency clients within the scope of its online advertising services violate Article 6 of the same law."

Emphasizing that the online advertising sector has a multilateral structure that enables advertisers to reach their target audiences through digital channels, the statement noted, "In this system, advertisers and publishers offering advertising space on websites, applications, and similar digital platforms are brought together through various advertising technology services.

Thanks to these services, digital advertising inventory is marketed through software systems, and the buying and selling of advertising space, especially display ads, is largely carried out through automated processes. Advertising activities in the sector are conducted within the framework of relationships established between advertisers, advertising agencies, and digital advertising service providers.

While advertisers are the party providing the advertising demand and budget for the promotion of their products and services, advertising agencies provide strategic and commercial services to advertisers in areas such as campaign planning, selection of appropriate digital channels, management of advertising budgets, and reporting of performance results," the statement added.

'REGARDING WHETHER DISCRIMINATORY PRACTICES ARE EMPLOYED'

Regarding the allegations subject to the investigation, it was stated, "The investigation concerns whether Google engages in discriminatory practices by billing advertisers and advertising agency clients through different legal entities within the scope of its online advertising services.

The basis of the relevant examination is that advertisers and advertising agency clients billed through Google Ireland are subject to withholding tax obligations under Turkish tax legislation, while advertisers and advertising agency clients billed through Turkey are not subject to this obligation. In this context, it has been evaluated whether the international billing structure and associated tax liabilities create different cost effects for certain undertakings within the same classification, and whether these practices result in discriminatory outcomes that constitute an abuse of dominant position under Article 6 of Law No. 4054, particularly taking into account the classifications to which advertisers and advertising agency clients are subject.

The Competition Board, having discussed the information, documents, and findings obtained during the preliminary investigation initiated in January 2026 at its meeting on March 5, 2026, found the findings to be serious and sufficient, and decided to launch an investigation into Google with the number 26-08/233-M.

During the investigation process, it will be investigated in detail on what criteria Google classifies its advertisers and advertising agency clients, whether this classification is objective, how the relevant classification is reflected in billing practices, what kind of cost effect it creates on the undertakings, and whether Google engages in other discriminatory behaviors based on the classification it imposes on advertisers and advertising agency clients," the statement concluded.