Turkish Competition Authority fines Google 2.6 billion Turkish Liras, more than 75 million dolars

The Competition Board (Board) concluded the investigation it launched on the economic entity (Google) comprised of Google Reklamcılık ve Pazarlama Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited and Alphabet Inc. with its decision dated 18.05.2023 and numbered 23-23/432-M in order to determine if Article 6 of the Act no 4054 on the Protection of Competition was violated in online display advertising and online ad technology services by Google.

The investigation first examined the allegations that Google introduced restrictions to ensure the exclusive use of its own demand side platforms (DSPs) for purchasing the inventory of the self-owned online vide sharing platform “YouTube,” and that it prevented the validation and measurement of YouTube advertisements through independent service providers. Google submitted commitments to the Board with respect to this allegation to eliminate any competitive concerns. The submitted commitments guarantee access to the YouTube inventory for third party DSPs classified as Qualified YouTube DSPs. This commitment was accepted with the Board decision dated 03.05.2024 and numbered 24-21/486-207, concluding the investigation process for the aforementioned allegations.

The investigation also examined the allegations that Google favored its own products/services through various behavior in the online ad technology services supply chain, where it has a vertically integrated structure, and that, within that framework, GOOGLE directed the inventory purchase demand from its own DSPs to the supply side platforms (SSPs) it owns, thereby favoring its own SSP service (AdX) through the publisher ad server. In this context, the effects of GOOGLE’s aforementioned practices in the DSP and publisher ad server markets on the competition in the SSP services market were examined.

Following the conclusion of the investigation process, decision no 24-53/1180-509 was taken following the discussion of the file in the Board meeting of 12.12.2024, according to which

I-

1. The economic entity under investigation, comprised of Google Reklamcılık ve Pazarlama Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited and Alphabet Inc., held dominant position in the demand side platform (DSP) services market.
2. With respect to the allegation that Google Reklamcılık ve Pazarlama Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited and Alphabet Inc. used their dominance in the demand side platform services (DSP) market to direct the demand for inventory purchase through their own DSPs to their own supply side platform services, no violation could be identified under Article 6 of the Act no 4054 on the Protection of Competition and therefore imposing administrative fines for the relevant type of infringement was not necessary,

II-

1. The economic entity under investigation, comprised of Google Reklamcılık ve Pazarlama Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited and Alphabet Inc., held dominant position in the publisher ad server services  market,
2. The economic entity comprised of Google Reklamcılık ve Pazarlama Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited and Alphabet Inc. gained unfair advantage for its own supply side platform (SSP) service based on its dominance in the publisher ad server services market, the self-preferencing practice in question could complicate the activities of its rivals and was in violation of Article 6 of the Act no 4054 on the Protection of Competition,
3. Accordingly, the economic entity comprised of Google Reklamcılık ve Pazarlama Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited and Alphabet Inc. should be imposed an administrative fine of 2,607,563,963.59 TL at …% of its annual gross revenues generated in the year of 2023 as determined by the Board under Article 16.3 of the Act no 4054 and Articles 5.1(b), 5.2 and 5.3(b) and 6.1(a) of the Regulation on Fines to Apply in Cases of Agreements, Concerted Practices and Decisions Limiting Competition, And Abuse of Dominant Position,
4. Under Article 9.1 of the Act no 4054 on the Protection of Competition, in order to terminate the infringement noted in Article 2 and to ensure the establishment of effective competition in the market, within 6 (six) months following the notification of the reasoned decision, Google Reklamcılık ve Pazarlama Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited and Alphabet Inc. must provide to third-party supply side platforms (third-party SSPs) conditions which may not be less favorable than those applied to its own services,
5. In case they fail to implement the obligations specified in Article 4 in full within 6 (six) months following the notification of the reasoned decision, daily administrative fines should be imposed on Google Reklamcılık ve Pazarlama Ltd. Şti., Google International LLC, Google LLC, Google Ireland Limited and Alphabet Inc. under Article 17.1(a) of the Act no 4054 on the Protection of Competition,

with the decision subject to appeal before Ankara Administrative Courts within 60 days following the notification of the reasoned decision.