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Turkey’s Competition Regulator to Use AI to Combat Algorithmic Price Fixing

By  |  July 7, 2025

Turkey’s top antitrust regulator is turning to artificial intelligence (AI) in an effort to address growing risks posed by algorithmic pricing systems that may lead to anti-competitive behavior.

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    Birol Küle, head of the Turkish Competition Authority, warned that a rising number of companies are using algorithms to set prices—an approach that can unintentionally lead to coordinated pricing and violations of competition law. According to a statement from Küle, the authority is launching proactive measures to respond to these developments.

    “We are launching preventive mechanisms to address these developments,” he said, noting that Turkey’s agency plans to introduce AI-based oversight systems to detect and prevent algorithm-driven market abuses.

    Per a statement by Küle, the broader mission of the authority is not simply to issue fines, but to foster open and competitive markets. He stressed that the effectiveness of competition policy should be measured by its ability to eliminate market distortions and lower entry barriers—not just by the penalties imposed.

    “When competition authorities carry out these duties effectively,” Küle noted, “their contribution to economic growth and public welfare far outweighs the monetary value of the fines they issue.”

    Read more: Turkey Launches Antitrust Probe into Spotify Over Market Practices

    He added that genuine competition remains the strongest form of regulation, and the authority’s aim is to build an environment where healthy competition can thrive without artificial restrictions on new entrants.

    Turkey’s recent regulatory actions have drawn attention internationally, particularly following a high-profile case earlier this year involving snack food giant Frito-Lay. According to a statement from the agency, Frito-Lay was fined 1.4 billion Turkish lira (approximately $35.01 million) for engaging in practices that restricted competition in traditional retail outlets.

    The investigation found that Frito-Lay had implemented de facto exclusivity practices in small retail settings such as kiosks and corner stores. Under the ruling, Frito-Lay must allow designated space for rival products in retail locations smaller than 200 square meters and is banned from occupying those competitor-designated areas.

    Küle emphasized that the impact of this ruling extends beyond the financial penalty. Per a statement, he noted that the decision is intended to preserve competitive access for smaller businesses and to prevent market dominance from being cemented through restrictive practices.

    Source: Daily Sabah