New rules aim to protect local e-traders from Chinese giants

ANKARA

The ruling Justice and Development Party's (AKP) new draft law, which stipulates the introduction of export incentives for e-commerce and includes provisions to protect consumers, has been approved by the Parliamentary Industry and Trade Commission.

"We are preparing for a situation where perhaps 200,000 SMEs, much more than the current 70,000, will export and an export figure of 400 billion Turkish Liras will be reached," said Deputy Trade Minister Mahmut Gürcan while briefing the commission members on the e-commerce regulations.

Expressing that the proposal will pave the way for e-exports, Gürcan said, "By 2028, around 378 billion liras in exports will have to be achieved to be exempt from licensing fees."

Gürcan pointed out the increasing market share of Chinese e-commerce giants Temu and Shein in Türkiye.

"We observe the increase in sales of Temu and Shein every day. The company, which made 6,544 sales at the beginning of the year, made around 600,000 sales in June and has 612,000 sales so far in July," he said.

"All the companies in Temu's marketplace are Chinese. We wanted to pass this law to counter their declaration of war on SMEs in Türkiye. There are 270,000 local small businesses in Trendyol, and 70,000 of them sell abroad through e-export channels."

Referring to the discounts and promotions offered by Chinese companies in the Turkish market, Gürcan said they want Turkish companies to increase their exports and improve their sales by selling abroad.

The deputy minister also said that commission rates in e-marketplaces are variable.

"The maximum commission rate is 22 percent," Gürcan said. "We have held meetings with all the e-commerce marketplaces to limit these commissions. There have also been complaints, especially from those in the food sector. The big players in the sector say: 'If we lower the commissions, other marketplaces will suffer greatly.’”

The bill approved by the commission also brings new regulations to the direct sales market, which currently has 2 million direct sellers, the vast majority of whom are women, and has reached a size of 10 billion liras.

The aim of the first local law on the sector is to clarify the difference between direct-selling companies and pyramid schemes, which cause consumer victimization, by requiring direct-selling companies to be established as capital companies and to comply with certain principles.

Another article of the proposal increases the penalties for unfair commercial practices up to 10 times. In cases where the crime is committed on local platforms, a precautionary suspension, a suspension of up to three months, or a fine ranging from 60,000 to 600,000 liras will be imposed. If the misleading advertisement takes place nationwide, a fine of between 600,000 and 6 million liras will be imposed.