NEWSLETTER-2021

111 COMPETITION LAW approach of the Competition Authority. Therefore, the implementation of these recommendations will be the beginning of a new era not only in terms of competition law practices, but also in terms of the functioning of e-marketplaces in the relevant markets. Findings Regarding the Theoretical Framework and Current Outlook Constituting the basis of the policy recommendations, this section, with its critical evaluations, is perhaps the most outstanding part of the Report. The Report considers that e-marketplaces suit the multilateral market model and differ from traditional markets due to their unique features. Along with the strong network effects, economies of scale and scope in the markets in which the aforementioned platforms operate, even the data-based operation of these platforms is considered a significant barrier to market entry. These barriers increase the level of competitive concerns of the Competition Authority. The said market is unable to easily correct itself due to this structure, which also causes a vicious circle in the market power of the undertakings with a strong position in the market. According to one striking finding of the Report, this vicious circle transforms “competition within the market” into “competition for the market.”As a result of the fact that “the winner takes all,” monopolization in the market becomes inevitable. Not only this monopolization, but also the market power of e-marketplaces increases the losses by enabling the undertakings to dictate unfair conditions to sellers and consumers and by allowing their exclusionary practices. Some findings of the Report are related to the current situation and the changes that the relevant market is going through. The evaluations and findings regarding the rapid growth of e-commerce and therefore e-marketplaces during the COVID-19 pandemic are probably the most substantial ones. For consumers, e-marketplaces constitute a different market than physical stores and brands’ own websites. The fundamental element of competition among e-marketplaces is the size of their active customer base. The more active users an

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