Turkey's Competition Authority launched an official investigation last Friday targeting the legal entities of the American company Alphabet, including its branches Google Ireland and Google Turkey. This action comes amid observations of practices that may violate Article 6 of Turkish Law No. 4054 on the Protection of Competition, which pertains to billing policies and discrimination among customers.
According to official data released by the authority, the investigation focuses on the "billing engineering" employed by Google, which is suspected of creating an unfair advantage and hindering competition. Google issues invoices to some advertisers through Google Ireland Limited, while others receive invoices through Google Reklamcılık Turkey.
Details of the Investigation
Under Turkish tax legislation, advertisers receiving invoices from the Irish entity are required to pay additional withholding taxes, while those dealing with the local entity are exempt. The authority believes that Google may be using subjective criteria to classify customers, leading to increased costs for certain companies and favoring others based on the type of entity issuing the invoice.
Thus, the investigation will examine the technical criteria that Google uses to classify advertising agencies and advertisers, and how this affects the final cost of services. Experts in digital economics indicate that the Turkish investigation touches on Google's financial nerve, focusing on "cash flow" rather than "algorithms" as seen in previous investigations.
Background & Context
Global pressure on Google is mounting, with recent months witnessing a surge in legal investigations against the company. On February 12, the European Commission intensified its actions against Google, accusing it of manipulating auction prices for advertisements via its search engine to illegally boost revenues. Additionally, a landmark ruling from the U.S. Department of Justice in April 2025 confirmed Google's monopoly over advertising technologies.
Locally, the Turkish Competition Authority previously conducted another investigation in January 2026, focusing on the Android system and revenue-sharing agreements with phone manufacturers, reflecting a growing legal siege aimed at loosening the company's grip on the global digital economy.
Impact & Consequences
Analysts expect that Google may be required to standardize billing practices for all customers within Turkey, with the possibility of facing a financial penalty of up to 10% of the company’s total annual revenue if violations are proven. Amendments to commercial contracts with digital advertising agencies may also necessitate ensuring "equal treatment" among all advertisers.
This investigation also highlights a conflict of interest, as Google operates simultaneously as an "exchange," "buyer," and "seller." The investigation seeks to disentangle these roles to ensure that additional costs are not passed on to smaller advertisers, which could significantly impact the digital advertising market in Turkey.
Regional Significance
This case is particularly significant for the Arab region, as it reflects the challenges faced by governments in confronting the dominance of major tech companies. These investigations may pave the way for other Arab countries to take similar steps to ensure fair competition in their digital markets.
In conclusion, the Turkish investigation against Google demonstrates a growing trend towards regulating digital markets, enhancing competition opportunities, and contributing to the protection of advertisers' rights, which may positively impact the digital economy in the region.