Business

Injunction decision from the Competition Board to Trendyol

The Competition Board took an injunction against Trendyol on the grounds that it discriminated among the sellers selling in the marketplaces. The institution has identified an algorithm that causes unfair competition.

The Competition Authority took a temporary injunction against DSM Group Consultancy Communication and Sales Trade Inc. (Trendyol) on the grounds that it discriminated among sellers selling in the marketplace. The Board decided to carry out a preliminary investigation about Trendyol in order to determine whether the relevant articles of the Law on the Protection of Competition were violated.

As a result of the on-site examination on the data in the algorithms and information systems during the preliminary research process, it has been determined that Trendyol both mediates the sales of 3rd party sellers and interferes with the listing algorithm in a way that gives unfair advantage to its own products on the same platform where it is the seller of its own brands such as TrendyolMilla, TrendyolMan and TrendyolKids. At the same time it was determined that they used the data obtained within the scope of the marketplace activities in the creation of the marketing strategy of their own brands, and that they discriminated among the sellers selling in the marketplace with the interventions made to the algorithm.

FAVOURITISM DETECTED

Considering that Trendyol has gained significant market share in all categories, especially fashion, in the multi-category marketplace platforms market in recent years, it was decided to take temporary measures, as these practices are likely to cause serious and irreparable damages until the final decision. In this context, it was decided that Trendyol should refrain from favoring its own products, including the interventions made by Trendyol through algorithm and coding, discriminating among sellers, and sharing and using the data obtained from marketplace activities in favor of its own brands, and take all necessary technical, administrative and organizational measures to ensure the auditability of these decisions.

MARKET SHARE HIGHLIGHT

As it will be remembered, last week, investigations were made at Trendyol’s center for two days without interruption, and detailed researches were made up to the algorithms. The injunction brought after the investigation indicates that Trendyol treats its own store more privileged than other sellers. According to the decision, Trendyol will not be able to show its own products in a more advantageous position against its competitors. “Considering that Trendyol has gained a significant market share in all categories, especially fashion, in the multi-category marketplace platforms market in recent years, these practices are likely to cause serious and irreparable damages until the final decision, it has been decided to take interim measures within the framework of Article 9 of Law No. 4054.”

Source: Sabah / Translated by Irem Yildiz

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