Turkey Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in turkey, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Türkiye - Digital Economy
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Overview

Türkiye’s digital transformation has been a strategic priority for the government, aiming to leverage digital technologies for economic growth and development. The Turkish government launched the “National Technology Initiative” and “Digital Türkiye” strategy to enhance digital infrastructure, boost innovation, and foster digital skills among its population. These strategies are designed to position Türkiye as a leader in digital technologies and ensure the country remains competitive in the global market. The focus areas include e-government services, digital economy regulations, and public-private partnerships to support digital transformation.

Türkiye’s digital economy is poised for significant growth, driven by increasing internet penetration, a young tech-savvy population, and supportive government policies. The competitive environment includes major players such as Turkcell, Vodafone Türkiye, and Türk Telekom, which dominate the telecommunications sector. Emerging trends include the rapid adoption of e-commerce, fintech solutions, and advancements in AI and IoT technologies. The digital economy’s contribution to Türkiye’s GDP is expected to rise substantially, fueled by investments in 5G infrastructure and smart city projects.

Market Challenges

Regulatory Environment and Digital Trade Barriers

Foreign vendors find it increasingly difficult to operate in Türkiye due to the existing 7.5% digital services tax (DST), local content requirements, and restrictions on social media platforms.  Additionally, regulatory challenges include strict data privacy laws modeled after the EU’s GDPR, evolving AI regulations, and restrictions on cross-border data flows. Compliance with these regulations can be complex and costly for businesses.

The regulatory environment is further complicated by stringent cybersecurity laws and measures aimed at combating online threats, which affect social media platforms and digital content providers. Developing and aligning digital standards with international norms remain a priority but also a challenge. Foreign companies face bureaucratic hurdles for market entry and often require local partnerships to navigate the regulatory landscape. Public sector procurement processes are also challenging for new entrants.

Several barriers impact digital trade in Türkiye, including data localization requirements that mandate data be stored within national borders, increasing costs and complexity for international firms. Technology barriers, such as import restrictions and high tariffs on digital products, hinder market access. Regulatory controls on internet service providers and online platforms limit market dynamics, and geopolitical considerations influence digital trade policies and market access conditions.

AI Regulation

On June 24, 2024, Türkiye’s Grand National Assembly introduced the Artificial Intelligence Law (2/2234). This draft law aims to create clear rules for developing and using AI technology. It sets out key principles for security, transparency, fairness, accountability, and privacy that developers must follow.

Cross-Border Data Flows

The Law on Protection of Personal Data No. 6698 requires companies and organizations to receive explicit consent before transferring data to countries that have not been deemed by the Data Protection Board (the decision-making organ within the KVKK-Kişisel Verileri Koruma Kurumu, Personal Data Protection Authority ) to have adequate data protections in place. Türkiye has not released the list of “adequate” countries yet, so companies are still required to receive explicit consent before transferring data over borders. 

Türkiye seeks to harmonize its personal data protection regulations with that of the EU’s General Data Protection Regulation (GDPR). As a step towards that objective, the KVKK implemented amendments to the Personal Data Protection Law (No. 6698) on June 1, 2024, allowing data controllers to process and transfer abroad personal data for rights protection or to meet obligations in employment, health, safety, and social security.  These amendments provide four alternatives for the transfer of personal data abroad:  1) adequacy decisions for countries, international organizations and sectors within the country, 2) non-international agreements between public institutions, 3) Binding Corporate Rules, and 4) Standard Contractual Clauses.

Content Moderation

In recent years, Türkiye’s Grand National Assembly has amended its Internet Law 5651 with provisions that expand its scope and applicability. The law covers information and communication technology firms, with fines that could reach up to 3 percent of global revenue and throttling of bandwidth by up to 95 percent. . The amended law criminalizes publishing what the Turkish Government considers disinformation on social media (e.g., the law requires social media apps to block content that violates Turkish morals or traditions) and raises potential privacy concerns and risks for third-party social media companies. The law builds on existing legislation that defines a social network provider (SNP), requires SNPs to appoint a local representative, sets procedures for content removal, requests reports from SNPs every six months, sets data disclosure obligations for companies, and requires user data to be stored within Türkiye. Regulation also mandates social networks to link accounts to phone numbers, remove fake accounts, and limit user time on platforms. Penalties for noncompliance include escalating fines, blocking of advertisement, and restricting bandwidth.

E-Commerce Law

The Regulation of Electronic Commerce Law No. 6563 was amended with the law Amending the Law on the Regulation of Electronic Commerce (the “Amendment Law”) adopted by the Turkish Parliament on 1 July 2022. This was due to concerns that in its current state, the law was inefficient in addressing the problems created in the face of rapidly changing digitalization and technology. Influenced by the European Union’s Digital Markets Act and the Digital Services Act, the amendments brought fundamental changes to the E-Commerce Law.  The amended law poses a number of challenges for industry players, including: an e-commerce license fee, which requires companies with a transaction volume exceeding 65 billion Turkish liras to pay a license fee of 25% of the transaction volume exceeding 65 billion Turkish liras and a decreasing license fee for the remainder of the transaction volume; advertising restrictions, which  limit the ability of certain companies to reach consumers through advertising and restricts the ability of certain companies from providing consumers with information about lower-cost alternatives; prohibits companies from selling their own brands, meaning that certain companies, based on their size, cannot sell lower priced private labeled products. 

Digital Trade Opportunities

Despite these challenges, significant opportunities exist in Türkiye’s digital economy. The size of the communication technologies market grew from $13 billion in 2022 to $15.9 billion in 2024, while the information technologies market reached $20.8 billion in 2024, up from $16.9 billion the previous year. Employment in information technologies increased by 5% to 194,000 and remained at 52,000 in communication technologies. Cross-sector enabling technologies offer numerous opportunities. Investments in 5G and beyond, including sub-sea cables, are crucial for improved connectivity. Advanced computing, cloud services, data centers, high-performance computing, satellite communication and platform services, and innovations in human-machine interfaces and AI are driving productivity and efficiency across multiple industries. Local telecom operators and municipalities are accelerating IoT solutions and smart city projects, further enhancing the country’s digital economy.

Specific Industry Sub-sectors

Key digital sub-sectors include quantum technologies, with emerging interest and investment in quantum computing for advanced problem-solving capabilities. Driven by the need for enhanced data security and future-proof encryption technologies, telecom companies and financial institutions are interested in the latest quantum cryptography solutions.

The fintech ecosystem includes numerous startups and innovations in digital payments, blockchain, and lending. 
Cybersecurity remains a top priority, with significant investments to protect against cyber threats. Network security, email and web security, cyber governance, and mobile and system security are focal points. Türkiye’s Cybersecurity Presidency (Siber Güvenlik Başkanlığı) was established by Presidential Decree No. 177, published in the Official Gazette on January 8, 2024, as a public legal entity directly affiliated with the Presidency and headquartered in Ankara. Its mandate includes shaping national cybersecurity policies and strategies, coordinating legislative work, managing emergency response and crisis plans, supporting R&D and ecosystem development, and fostering collaboration between public institutions, the private sector, academia, and international stakeholders. 

he Presidency gained significant powers under the Cybersecurity Law No. 7545, enacted on March 19, 2024, which formally designated it as the primary regulatory and certification authority for cybersecurity products, services, and providers in Türkiye. The law enables the Presidency to set national cybersecurity standards, determine critical infrastructure sectors, issue regulations, and oversee inspections, while also granting authority to collect and manage cyber incident data and, where necessary, conduct searches and seizures with judicial oversight. It also introduced strict criminal penalties, including up to 15 years’ imprisonment for cyberattacks on critical national systems or for disseminating leaked data. Through these reforms, the Cybersecurity Presidency has become Türkiye’s central body for safeguarding digital infrastructure, developing a secure cyber ecosystem, and strengthening resilience against evolving cyber threats.

The Turkish e-commerce market is experiencing rapid growth, driven by high internet penetration, mobile adoption, and digital payment infrastructure. In 2025, the market is estimated at around $93.5 billion and is projected to reach $154.9 billion by 2030 with a 10.6% CAGR. E-commerce’s share of Türkiye’s GDP rose from 2.7% in 2019 to 6.5% in 2024, showing its growing importance in the economy. Mobile e-commerce dominates, accounting for about 72% of transactions, while digital wallets and alternative payment methods are expanding. Major platforms include Trendyol (Türkiye’s first decacorn, now owned by Chinese Alibaba Group), Hepsiburada (acquired by Kaspi.kz), Yemeksepeti (food delivery leader, owned German Delivery Hero), and Getir (ultra-fast grocery delivery, acquired by Mubadala Investment from UAE).

Additionally, amendments to Türkiye’s Customs Law took effect on August 21, 2024, introducing a €30 (approximately $35) de minimis threshold for international e-commerce shipments. Packages valued over €30, including the shipment cost, are now subject to full customs procedures, including 30% import duty for goods originating from EU countries and 60% for goods from non-EU countries, significantly impacting cross-border e-commerce flows into Türkiye. 

Digital Economy-related Trade Events

Türkiye hosts several key events that highlight its digital economy initiatives and opportunities. These include the ICT Summit, organized since 2000 and showcasing ICT innovations and trends; Türkiye AI (TRAI) Summit, focusing on the latest AI technologies, as well as the discussion of AI’s immediate and long-term effects; Mobilefest Eurasia, showcasing advancements in telecommunications, digital services and  mobile solutions; and Istanbul Fintech Week, bringing together fintech innovators, investors, and stakeholders to explore the future of financial technologies.
The Department of Commerce in collaboration with the Ministry of Trade also leads the annual U.S.-Türkiye Digital Dialogue, a forum for exchanging best practices and addressing potential entry barriers.  
For more detailed and updated information, referring to the specific sections on Trade.gov and the U.S. Department of Commerce’s reports would be beneficial.

Helpful Resources

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

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