New regulations in the data protection legislation in Turkiye allow international companies to transfer user data in Turkiye abroad. These changes, which were put on the agenda of the Parliament earlier this month and became law by being published in the Official Gazette as of today, may pave the way for a return to Turkiye, especially for large technology companies such as PayPal, which had to leave the local market before.
As we previously reported on March 1, the passage of this bill could reverse the decline in Turkiye’s foreign direct investment (FDI) reception in recent years. New regulations allow data controllers and processors to transfer data abroad when an adequacy decision is made for sectors or international organizations in Turkiye.
Since PayPal did not have a server in Turkiye, its license application was rejected by the Banking Regulation and Supervision Agency, and this caused the company to withdraw from the Turkish market. However, now there is an opportunity for other companies in a similar situation to re-enter the Turkish market.
According to the impact analysis conducted by the International Investors Association (YASED), the new data protection law has the potential to attract $18.6 billion in direct foreign investment to Turkiye. FDI, which peaked at $22 billion in 2007, dropped to $10.6 billion in 2023. New regulations are expected to stop this downward trend and increase investments again.
Source: Startupteknoloji / Prepared by Irem Yildiz
