How Google’s Market Control Costs Turkish Businesses Billions

A comprehensive “Digital Advertising Report” released today by the Institute for Public Studies (February 24, 2026) has sparked a critical debate on the economic impact of search engine and app store monopolies. Prepared by experts Av. Dr. Yavuz Selim Günay and Yağmur Uzunırmak, the findings reveal that a lack of competition in the digital ecosystem is costing Turkish businesses and developers billions in unnecessary fees and inflated advertising rates.

The Cost of Dominance: Why Google Ads in Turkey Are “Overpriced”

The report identifies a direct correlation between Google’s massive market share and the rising Cost Per Click (CPC) for local businesses. With Google controlling over 85% of the general search market in Turkey, the platform’s pricing power has created a significantly more expensive ecosystem compared to more competitive nations.

• The South Korea Comparison: In markets like South Korea, where Google’s share is a more modest 30%, the CPC remains competitive at $0.28.

• The Turkey Premium: Due to lower competition, Turkey’s average CPC has climbed above $0.65.

• Potential for Relief: Analysts project that if competition levels forced Google’s share down to 70%, Turkish advertisers could save an estimated $4 billion by 2028.

Digital Ad Spending Hits a Ceiling for E-Commerce

While Turkey’s digital advertising expenditure is expected to reach $1.359 billion by 2028, high customer acquisition costs are beginning to stifle e-commerce growth.

The report highlights that e-commerce penetration in Turkey fell to 19% in 2024, remaining trapped in a narrow 18-20% band. While market leaders like Trendyol (22%) and Hepsiburada (12%) have the capital to compete, the thousands of small businesses that make up 43% of the market find themselves entirely dependent on, and vulnerable to, rising digital ad prices.

The App Store “Double Tax”: A Burden on Local Tech

Beyond search engines, the mobile ecosystem is locked in a duopoly between Google Play (61%) and the App Store (39%). With Turkey’s smartphone penetration reaching 96%, mobile app revenue is expected to reach $1.432 billion this year.

However, the standard 30% commission levied by these global giants is severely draining local developers’ resources. The report estimates that if commission rates were reduced to a more competitive 15%, Turkish app developers could retain an additional $833 million in capital between 2026 and 2029.

Structural Dependency in the Tourism Sector

The sector with perhaps the highest structural vulnerability to these digital costs is tourism. As the industry moves toward a target of $75 billion by 2028, hotels and travel services are forced to incur high advertising costs to maintain visibility on search engines, putting significant pressure on the profitability of Turkey’s leading economic driver.