E-Commerce and Digital Platforms

The economic structure of digital platforms differs significantly from that of traditional one-sided markets. Platforms often bring together several distinct user groups (such as sellers, consumers, advertisers and service providers) within the same ecosystem. Network effects, economies of scale, accumulation of data and the costs users face when switching platforms can cause competitive conditions to change substantially over a relatively short period.

The Turkish Competition Authority's Sector Inquiry into E-Marketplace Platforms has likewise identified platform-seller relationships, the use of data, network effects and the bargaining power of platforms as central competition policy issues. Where a platform competes through its own products or services with third parties operating on that same platform, issues such as ranking algorithms, access to data, commission structures, most-favoured-customer clauses, exclusivity, restrictions on sellers' conduct across different sales channels and conditions affecting multi-homing or platform switching may become particularly significant.

KFD Consulting seeks to bring competition law assessment into the early stages of product development and commercial model design in digital businesses. Rather than reviewing a new commission structure, seller agreement, algorithmic ranking system or data-use policy only after it has been implemented, these issues are considered, where possible, during the design phase. This makes it possible to manage legal risk while preserving the commercial functionality of the product.