The president of Türkiye’s competition watchdog, Birol Küle, has warned that companies are increasingly using algorithms to set prices, an approach that can automatically trigger anti-competitive practices such as price fixing.

"We are launching preventive mechanisms to address these developments,” he said. "In particular, we plan to introduce AI-powered oversight systems to detect and counteract algorithm-driven violations.”

Küle emphasized that the core responsibility of competition authorities is to correct market distortions, design effective regulatory mechanisms, and remove barriers that hinder market entry. "When competition authorities carry out these duties effectively,” he noted, "their contribution to economic growth and public welfare far outweighs the monetary value of the fines they issue. At the Turkish Competition watchdog, we aim to be known not for the penalties we impose, but for our proactive efforts in opening up markets and fostering fair competition.”

He further underlined that the most powerful form of regulation is competition itself. "Our goal is to establish an environment where healthy competition thrives and where new entrants are not blocked by artificial barriers,” he said.

Noting that their decisions are being closely followed at the global level, Küle recalled that they fined Frito-Lay TL 1.4 billion ($35.01 million) this year.

He emphasized that the significance of their regulatory decision goes far beyond the financial penalty, stating: "We found that Frito-Lay had engaged in de facto exclusivity practices in the traditional retail channel, which mainly consists of small shops and kiosks. Our decision mandates that sales stands in locations with less than 200 square meters of enclosed space must allocate specific areas to competitors, and Frito Lay is prohibited from using these designated competitor spaces."

He added: "We’ve made similar decisions in the past regarding carbonated and alcoholic beverages, ice cream, fuel distribution, and newspaper and magazine distribution sectors. We are currently issuing numerous comparable and precedent-setting decisions in digital markets as well.”

He said that companies increasingly use algorithms to automatically fix prices by tracking competitors, making violations harder to detect through traditional methods. In response, the watchdog is developing AI-powered counter-audit mechanisms to prevent such automated collusion and maintain fair competition.

Küle emphasized that the agency seeks to be known not for the fines it imposes, but for its regulatory role in removing market entry barriers and fostering a competitive environment. He reiterated that competition itself is the most effective form of regulation, and that institutional efforts should focus on enabling new players to enter markets freely.

One of the most significant moves this year, according to Küle, was the conditional approval of the Tofaş/Stellantis merger, which was tied to concrete commitments in investment, job creation and exports. This marks a first in the institution’s history and reflects a shift from static price/output analysis toward a broader view of competition’s dynamic effects. Küle called the decision precedent-setting and said it would influence both international case law and economic literature.

The competition watchdog is currently conducting more than 30 ongoing investigations, with major cases involving global and national players such as Apple, Google, Netflix, Visa/MasterCard and Sahibinden, among others. Investigations are also active across diverse sectors, including pharmaceuticals, chemicals, seeds, cement, ready-mix concrete, electronics and casting agencies. Meanwhile, sector-wide studies are being carried out in mobile ecosystems, red meat, container shipping, advertising, port services and automotive.

Küle warned that market dominance is becoming more subtle but more powerful in the digital age. Firms like Google, Amazon and Meta gain automatic market control through access to data, algorithms and network effects, quickly sidelining smaller competitors. He emphasized that mergers and acquisitions in finance, energy, food, and media are increasingly concentrating market power, heightening the risk of dominance abuse.

Noting that some companies now have revenues larger than national budgets, Küle stressed that their actions influence not only local markets but global competition. This makes international cooperation among competition authorities essential for maintaining fair market practices.

Küle concluded by underlining the importance of strengthening oversight on abuse of dominance, warning that as large firms restrict competition, consumer choice narrows and economic stability comes under threat. The watchdog will prioritize this area moving forward, using both national tools and global collaboration.