The European Union is implementing various programs and regulations to promote digital innovation and enhance competitiveness. Among these is the Digital Europe Program, launched with a budget of 7.5 billion euros ($8.10 billion) for the 2021-2027 period.
The initiative aims to help the EU achieve digital independence and focuses on investing in advanced technologies, ensuring accessibility for small and medium-sized enterprises (SMEs) and promoting digital innovation.
Many enterprises in Türkiye employing artificial intelligence technology across various sectors, such as education, finance, health care and energy, could benefit from these funds.
However, for Türkiye to fully tap into these opportunities, it needs to climb higher in the Digital Competitiveness Index, which could also help it better safeguard its startups against data monopolies.
Ranked 52nd out of 63 countries, Türkiye's position indicates room for growth in digital competitiveness.
Moreover, dependence on AI and associated threats are rapidly increasing. It is crucial to avoid isolation in the competition against major corporations that have become the biggest holders of our digital privacy.
Attorney and competition law expert Mert Karamustaoğlu underscores the importance of addressing digital market monopolies.
Karamustaoğlu highlights the EU’s efforts through the Digital Markets Act (DMA) and the Digital Services Act (DSA) to ensure fairness and competition in digital markets.
"The core issue lies in the heavy reliance on data-driven business models in digital markets. This often leads to companies operating platforms gaining significant control over data. Such dominance tends to exclude rival companies or newcomers, making it challenging for them to compete in the market. Occasionally, this situation results in the exploitation of consumers as well," he explained.
Karamustaoğlu said established companies in digital markets become so powerful that scale economies make it almost impossible for other businesses to enter.
"In competition law, this is referred to as market entry barriers. In such markets, the company that enters first becomes a pioneer and strengthens its position as an ‘incumbent provider’ and eventually dominates and turns into a monopolistic power. Once this monopolistic power is acquired, especially in markets involving new technologies, the consequences include higher prices, exclusion of competitors, exploitation of consumers and diminished quality. Ultimately, this stifles competition in the market, hindering innovation and investment," he noted.
In recent years, Türkiye has lagged behind key hubs like the European Union in implementing certain regulations, according to Karamustaoğlu.
"The EU is undergoing a new wave of regulation with initiatives such as the Artificial Intelligence Act, the Digital Markets Act (DMA) and the Digital Services Act (DSA). Over the last decade, a process has emerged in the EU that has profoundly altered the operations of technology companies. To this end, new regulations have been enacted in the EU," he said.
However, he says Türkiye remains somewhat behind. "The Competition Authority and the Ministry of Trade are particularly focused on e-commerce and platforms. While the Competition Authority makes rulings, the ministry is addressing the matter through laws and related regulations concerning electronic commerce," he added.
According to Karamustaoğlu, there are many aspects that need to be examined in this area.
"Regulations must be tailored to Türkiye's socio-economic conditions and aligned with its strategic goals, but EU practices should not be overlooked. Considering that many global giants operate in Türkiye, there is an urgent need for a new regulatory initiative in digital markets and services, much like in the EU," he said.
"In the era of the global digital economy, competition law in technology markets is almost like a storm sweeping through. Major corporations such as Google, Meta and Apple, which we are all familiar with, are undergoing significant scrutiny under competition law investigations in regions like the EU and the United States."
Enhancing digital competition is expected to unlock investment opportunities for startups. It's crucial to adopt a holistic approach concerning data security, cybersecurity, artificial intelligence and data centers.
Dependency on the products and services of tech giants like Google, Meta and Apple has already grown. Today, with the advent of artificial intelligence and platforms like OpenAI, new dependencies and monopolies are emerging, and delayed action poses risks.
The European Union has set an example with its decade-long battle against data technology giants. Swift adaptation is now essential.
With the enforcement of laws and regulations, data giants will be compelled to implement more serious measures, aligning with EU standards in areas like investment and transparency within Türkiye. Establishing digital competition will pave the way for investments and, consequently, foster the growth of technology startups.
The digital world has become a stage for an unseen transaction. The email platforms, messaging apps, video-sharing services, and social media platforms we access for free are transforming our personal data into profits. What feels like "free" comes at a cost – our digital privacy.
Digital privacy encompasses the security of our online identities, personal information, messages, movements and preferences. The platforms we trust – email services, photo and video-sharing apps, messaging tools – represent companies where we essentially "pawn" our privacy. This includes the very essence of our private lives online.
Unfortunately, digital privacy is continuously compromised by social media giants, search engines, e-commerce sites, and even artificial intelligence assistants. From the applications we use and the websites we visit to the messages we write and the location histories we leave behind – everything is collected, analyzed and utilized for commercial or political gain.
Tech giants like Google, Meta, Microsoft, Apple, Amazon and OpenAI justify their data usage by claiming to deliver improved services. Without institutions such as government agencies or entities like the European Union taking a stand, civic pressure to counter these profit-driven corporations seems nearly impossible.
The vast amounts of data collected by tech companies have become virtually irreversible. For instance:
If you use Gmail, YouTube or Google Search, your search history, emails and tracking preferences are stored by Google.
On platforms like Facebook and Instagram, your photos, messages and interests are processed by Meta.
Shopping with Amazon or using Apple devices means your purchasing habits, health records and financial data are analyzed.
Even interactions with AI platforms like OpenAI are used to train their models with the questions and messages you provide.
TT Ventures, a venture capital arm of Türk Telekom, one of Türkiye's leading telecommunications and technology companies, offers significant support to startups embarking on their global journey.
For over a decade, it has provided businesses with key references, funding and acceleration programs like Pilot, fostering the growth of innovative initiatives.
As technology startups globalize their solutions, they attract more substantial investment opportunities. Türk Telekom, a pioneer in Türkiye's digital transformation, actively supports innovative startups, contributing to the formation of a digital future.
Pilot, the startup acceleration program led by Türk Telekom Ventures, continues to accept applications for its new term.
Through Pilot, startups gain access to office spaces, technological infrastructure, communication support, mentorship from experts and comprehensive training opportunities. Moreover, program participants can explore collaboration opportunities with Türk Telekom and connect with a vast investor network.
Muhammed Özhan, general manager of Türk Telekom Ventures, emphasized the program's significance, saying that the company has continued to create value within the entrepreneurial ecosystem by supporting innovative startups for more than 10 years.
"As Türk Telekom’s venture capital arm, our Pilot program accelerates the growth of technology-driven startups and guides the digital future. Beyond investment and cash support, startups accepted into our program gain access to a specially designed complementary overseas initiative, leveraging Türk Telekom's global network to enter international markets," Özhan noted.
"Not only do we provide financial assistance, but we also foster growth through collaborations and mentorship. We've established co-working spaces such as SANTRAL in Tahtakale and the Türk Telekom Ventures Entrepreneurship Center at Atatürk Cultural Center. Additionally, our office in San Francisco serves as a vital link for startups aiming for global outreach. In this 13th term of Pilot, we remain committed to enhancing the entrepreneurial ecosystem and helping startups compete on a global scale."
Program participants gain investment opportunities and collaboration prospects with Türk Telekom, as well as access to various resources like office spaces, technological infrastructure, and communication assistance.
Furthermore, startups can participate in specialized overseas entrepreneurship programs, gaining invaluable experience and opportunities to enter global markets through Türk Telekom's extensive business connections.
Applications for the 13th term of the program are open through the Türk Telekom Ventures Pilot website (ttventures.com.tr).
In its 12 terms, the program granted 121 startups a cumulative cash support of TL 70 million ($1.84 million). Sixty-six of these went on to secure over $51 million in total investments, enabling them to scale their businesses significantly.
