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The Turkish Competition Authority (the “TCA”) announced on 7 April 2026 that it has launched a comprehensive sector inquiry into the artificial intelligence ecosystem.1 In its announcement, the TCA emphasizes that rapid developments, particularly in terms of generative AI, point to new competitive dynamics shaped around data, computing power, and platform ecosystems, and that this transformation is fundamentally reshaping market dynamics.
Through this inquiry, the TCA aims to assess the impact of this evolving market structure on competition from a holistic perspective and to identify potential competition risks at an early stage.
Key Points Highlighted by the Authority in Its Announcement:
- The multi-layered structure of the AI value chain and the strong interdependencies between its different layers;
- Access to key inputs, such as data, computing capacity, and financing, plays a decisive role in competitive strength, particularly in the development of foundation models;
- Undertakings that secure early access to critical inputs are able to position themselves across multiple layers of the value chain, form vertically integrated structures, and rapidly strengthen their market power;
- This structure gives rise to competition risks such as higher barriers to entry, user lock-in to specific ecosystems, and difficulties for competitors in accessing key inputs;
- The integration of AI technologies into large digital platforms may give rise to competition law risks such as self-preferencing, tying, exclusionary practices, and restrictions on access;
- The increasing importance of merger control in relation to mergers and acquisitions in the field of artificial intelligence.
The Authority also notes that the general-purpose nature of foundation models further accentuates competition risks such as barriers to entry, user lock-in, and access to key inputs. In this context, it emphasizes that access to data and computing power has become a critical factor for competitive dynamics.
This sector inquiry provides important signals not only regarding the current market structure but also on how future competition and innovation dynamics may evolve. The findings are expected to inform policy development processes and the design of potential intervention tools going forward.
Footnote
1. Turkish Competition Authority, “Turkish Competition Authority Launches Sector Inquiry into Artificial Intelligence”, 7 April 2026, available at: https://www.rekabet.gov.tr/tr/Guncel/yapay-zekaya-rekabet-kurumu-sektor-incel-d21eee058332f11193f70050568585c9
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