New technologies have enabled automated data processing, personalization, and recommendation systems, all of which rely on personal data. Government organizations have also started creating extensive data banks containing individuals’ personal data. Consequently, phrases like “I have read and accept” or “Allow all cookies” have become commonplace.

So, how does Türkiye, a country striving to balance technological advancement with individual privacy rights, protect personal data, often referred to as the “new oil” of the digital age?

Terminology

Below are the definitions of the relevant terms:

• Personal data: Any information relating to an identified or identifiable person.
• Data subject: A natural person whose data is processed.
• Sensitive personal data: Data related to a person’s race, ethnicity, political views, philosophical beliefs, religious affiliation, appearance, association membership, health, sexual life, or criminal record.
• Data controller: A person or entity responsible for determining the purposes and means of processing personal data.
• Data processor: A person or entity that processes data on behalf of the data controller.
• VERBIS: A registration system where data controllers must register before processing personal data.

Law on Protection of Personal Data (Law No. 6698)

The Law No. 6698 on the Protection of Personal Data (KVKK), which came into force on April 7, 2016, is heavily based on the European Union Data Protection Directive (95/46/EC). The Law outlines:

• Definitions of key terms like personal data, sensitive data, consent, data controller, and data processor.
• Key principles for data processing.
• Obligations of the data controller.
• Rights of the data subject.
• Complaint procedures.
• Penalties and fines for non-compliance.

Constitutional Protection

Personal data protection became a constitutional right following the 2010 Constitutional Reform Referendum. Article 20 of the Constitution now states:

“Everyone has the right to demand the protection of their personal data. This right includes being informed, accessing, correcting, and deleting their personal data, and knowing whether it is used in line with its intended purpose. Personal data can only be processed as prescribed by law or with explicit consent. The principles and procedures regarding data protection shall be established by law.”

This provision grants individuals the following rights:

• To request the protection of their personal data.
• To demand measures that prevent their data from reaching unauthorized third parties.

The Role of the Personal Data Protection Authority

The Personal Data Protection Authority, established by the Law, is a public entity tasked with ensuring the Law’s proper implementation. Its duties include:

• Monitoring legislative and practical developments and making recommendations.
• Cooperating with public institutions, non-governmental organizations, professional associations, and universities.
• Shaping the practice and interpretation of the Law through inspections and publishing summary decisions (KVKK gov).

Obligations of the Data Controller

Upon obtaining personal data, the data controller is obligated to inform the data subject about:

• The identity of the data controller.
• The purpose of data processing.
• The purposes for which the processed data may be transferred.
• The method and legal basis for data collection.
• The rights of the data subject.
• The process and consequences of deletion if requested.

Additionally, the data controller must take administrative and technical measures to protect the obtained personal data. The controller is also required to register with the Data Controllers Registry before beginning data processing, although the Board may exempt some from this obligation based on specific criteria (KVKK gov).

Rights of the Data Subject

Once a data subject consents to the processing of their personal data, they have the right to:

• Request information about the processing of their data.
• Request the erasure, destruction, or anonymization of their data under specific conditions.
• Learn the purpose of data processing and whether it aligns with the intended use.
• Know the third parties to whom their data has been transferred, both domestically and internationally.
• Request correction of incomplete or inaccurate data.
• Claim compensation for damages arising from unlawful processing (KVKK gov).

Consent Mechanism & Exceptions

Explicit consent from the data subject is necessary and is defined as freely given, specific, and informed consent. According to Article 5 of the KVKK, “Personal data shall not be processed without the explicit consent of the data subject.” However, there are exceptions where consent is not required:

• When explicitly provided for by law.
• When necessary for the protection of life or physical integrity, especially if the person is unable to provide consent due to incapacity.
• When data processing is necessary for a contract between the data subject and the controller.
• When necessary for compliance with a legal obligation.
• When the data subject has made the data public.
• When data processing is necessary for establishing, exercising, or protecting legal rights.
• When data processing is necessary for the legitimate interests of the data controller, provided it does not violate the rights and freedoms of the data subject (KVKK gov).

Processing sensitive personal data is prohibited unless specific conditions are met, such as explicit consent or legal obligations (KVKK gov).

Transferring Personal Data Abroad

With the amendments adopted on March 12, 2024, which took effect on June 1, 2024, three categories for cross-border data transfer were introduced:

1. Presence of an adequacy decision: Personal data can be transferred abroad if there is an adequacy decision, evaluated by the Board every four years.
2. Providing adequate measures: If no adequacy decision exists, data can still be transferred if certain conditions are met, such as binding corporate rules or standard contracts approved by the Board.
3. Exceptional conditions: In the absence of an adequacy decision and adequate safeguards, personal data may be transferred occasionally under certain conditions, such as explicit consent from the data subject or when necessary for contract performance (KVKK gov).

GDPR Compliance and Adequacy Decision

As of 2024, Türkiye has made significant strides to align its data protection framework with the GDPR through various amendments to its Personal Data Protection Law (KVKK). However, despite these efforts, the European Commission has not granted Türkiye an adequacy decision. This means that the level of data protection in Türkiye is not yet considered equivalent to that provided under EU law (Marpataş).

An adequacy decision is vital because it allows for the free flow of personal data between the EU and the non-EU country without the need for additional safeguards. In the absence of such a decision, companies in Türkiye must rely on alternative mechanisms, such as Standard Contractual Clauses (SCCs) or Binding Corporate Rules (BCRs), to legally transfer personal data to the EU.

The lack of an adequacy decision also places Türkiye at a competitive disadvantage compared to countries like Switzerland and Canada, which have secured adequacy decisions from the EU. These countries enjoy simpler and more secure data flows with the EU, benefiting their international business operations.

To achieve an adequacy decision, Türkiye will need to continue strengthening its data protection framework and ensure full alignment with GDPR standards (LawNow Marpataş).

Türkiye’s Performance in International Data Protection Indices

Türkiye’s data protection efforts have been scrutinized in various international reports and indices:

1. UNDP’s Data Governance Framework: The United Nations Development Programme (UNDP) released a report in 2024 on Türkiye’s National Data Strategy, emphasizing the need for better transparency, stewardship, and responsible data handling. The report supports the idea that Türkiye is on the right path but still has a way to go to meet international standards (UNDP).
2. Comparative Studies: Academic studies comparing Türkiye’s KVKK with the GDPR highlight the progress Türkiye has made but also point out the gaps that remain. For instance, Türkiye’s lack of an EU adequacy decision has been identified as a key area needing improvement (GCRIS Database).
3. Digital Adoption Reports: Reports like Digital 2024 provide insights into Türkiye’s digital landscape, indicating a high level of social media use and the corresponding need for robust data protection laws. These reports underline the importance of continuing to strengthen data protection measures in light of the widespread digital engagement in Türkiye (DataReportal – Global Digital Insights).

Economic Impacts of Data Protection Practices in Türkiye

The implementation of the Personal Data Protection Law (KVKK) and related regulations has had profound economic effects in Türkiye. These impacts vary significantly across different sectors and company sizes, with both positive outcomes and significant challenges.

1. Compliance Costs and Economic Burden

The cost of complying with the KVKK has been a substantial burden, particularly for small and medium-sized enterprises (SMEs). These companies often struggle to allocate the necessary resources to upgrade data security systems, hire legal experts, and train staff, leading to significant financial strain. In sectors like banking, healthcare, and e-commerce, where data handling is intensive, the costs are even higher. For example, the banking sector alone spent approximately 500 million TL on data security and KVKK compliance between 2020 and 2022 (www.ksthukuk.com).

While these investments are crucial for safeguarding personal data, they also impose a heavy economic burden, particularly on smaller businesses that may lack the financial resilience of larger corporations. This could lead to market consolidation, where only the largest players survive, potentially stifling competition and innovation (LawNow).

2. Innovation and Competitiveness

The stringent requirements of the KVKK, particularly regarding data processing and cross-border data transfers, have slowed down innovation in some sectors. Companies working on artificial intelligence (AI) and big data analytics report that compliance challenges have extended development timelines and increased costs, thereby inhibiting their ability to innovate rapidly (LawNow).

Moreover, the absence of an adequacy decision from the European Union places Turkish companies at a competitive disadvantage in international markets. The additional hurdles in transferring data across borders can slow down operations and reduce the attractiveness of Turkish companies as partners in international collaborations. This is especially problematic for businesses in the tech and digital services sectors, where seamless data flows are critical for competitiveness (Mondaq).

3. Trust Economy and Consumer Behavior

On the positive side, the implementation of KVKK has significantly boosted consumer trust in digital services. As consumers feel more secure about their data being protected, their engagement with digital platforms has increased. For instance, the percentage of users engaging in online shopping increased by 15% from 2020 to 2023, reflecting growing confidence in data protection measures (www.ksthukuk.com).

This increase in consumer trust has directly contributed to the growth of the e-commerce sector in Türkiye, with the market size expanding by 30% in 2023 compared to the previous year. The rise in consumer confidence is a clear economic benefit of strong data protection practices (www.ksthukuk.com).

4. Data Economy and New Business Models

The focus on data protection has spurred the development of new business sectors, particularly in data management, cybersecurity, and compliance services. The number of companies operating in these fields increased by 40% between 2020 and 2024, creating new job opportunities and contributing to economic diversification (www.ksthukuk.com).

However, these benefits are not evenly distributed. While some sectors and companies have thrived under the new regulatory environment, others, particularly those reliant on data monetization, have struggled. The restrictions on personal data usage have forced companies to rethink their data monetization strategies, which can limit their growth potential (LawNow).

5. International Investments and Data Centers

The data localization requirements of the KVKK have encouraged international companies to invest in data centers within Türkiye. Between 2022 and 2024, multiple large-scale data centers were established, reflecting the positive impact of these regulations on attracting foreign direct investment (www.ksthukuk.com).

However, the lack of an EU adequacy decision continues to be a significant barrier to attracting even more investment. While the alignment of Türkiye’s data protection regulations with EU standards has improved the country’s credibility among foreign investors, the stringent regulatory environment may still deter some multinational companies from investing in Türkiye, opting instead for markets with fewer restrictions on data flows (Mondaq).

The economic impacts of data protection practices in Türkiye are complex and multifaceted. On one hand, the KVKK has increased consumer trust, driven growth in the digital economy, and fostered the development of new business sectors. On the other hand, the compliance costs, innovation constraints, and challenges in international competitiveness present significant economic burdens, particularly for SMEs and companies engaged in cross-border operations.

To maximize the benefits of data protection regulations while minimizing the economic drawbacks, it is crucial for policymakers, businesses, and other stakeholders to work together. This collaboration can help ensure that data protection laws support both robust privacy standards and a dynamic, competitive economy.

Emerging Challenges in Data Protection: AI and Big Data

As Türkiye advances in its data protection framework, new challenges are emerging, particularly in the context of artificial intelligence (AI) and big data. These technologies are revolutionizing various sectors but also posing significant risks to privacy and data security.

AI’s Role in Data Processing

AI systems often require vast amounts of data to function effectively, and this includes personal data. The use of AI in everything from healthcare to finance means that more personal data is being processed than ever before. However, AI algorithms can sometimes operate as “black boxes,” making it difficult to understand how decisions are made or to identify potential biases in data processing. This opacity can conflict with principles of transparency and accountability, which are central to data protection laws like Türkiye’s KVKK and the EU’s GDPR (UNDP).

Big Data and Privacy Concerns

Big data analytics involves processing large datasets to uncover patterns, trends, and associations. While this can lead to valuable insights, it also raises significant privacy concerns. The aggregation of data from multiple sources can lead to the re-identification of anonymized individuals, thereby compromising their privacy. Moreover, the sheer volume of data processed in big data initiatives can make it challenging to ensure that data protection principles such as data minimization and purpose limitation are upheld (DataReportal – Global Digital Insights).

Regulatory Responses and Future Directions

Regulators in Türkiye and globally are grappling with how to adapt existing data protection frameworks to address these challenges. There is a growing recognition that AI-specific regulations may be necessary to complement general data protection laws. The European Union, for instance, is moving toward adopting the AI Act, which seeks to regulate high-risk AI systems to ensure they comply with fundamental rights, including data protection. Türkiye will need to consider similar measures to keep pace with international standards (UNDP).

In Türkiye, the Personal Data Protection Authority (KVKK) has begun exploring how AI and big data fit within the existing legal framework and what additional measures might be necessary. As Türkiye continues to develop its National Data Strategy, it will be crucial to integrate considerations related to AI and big data to ensure that the benefits of these technologies are harnessed while safeguarding individual rights.

Data Breaches

Data breaches have become a significant concern in Türkiye, with many cases reported to the Personal Data Protection Authority (KVKK). These breaches often occur due to insufficient security measures by data controllers or unauthorized data processing activities. For example, a health institution might use patients’ sensitive personal data without consent for marketing purposes, which constitutes a serious breach.

Some notable examples include:

• Facebook: In 2020, KVKK fined Facebook 1.65 million TL for a data breach that resulted in the unauthorized sharing of millions of users’ personal information with third parties.
• Yemeksepeti: In 2021, Yemeksepeti, a popular food delivery service, was fined 1.9 million TL following a data breach that exposed customers’ personal data to unauthorized access.
• TikTok: On March 1, 2023, TikTok was fined 1.75 million TL for violations including unauthorized collection of children’s data without parental consent, failure to obtain permission for cookies used for profiling purposes, and general violations of privacy rules.

These cases underscore the critical nature of data security obligations under Turkish law and the significant consequences of non-compliance .

Penalties for Non-Compliance

Penalties for non-compliance with the KVKK include both criminal sanctions and updated administrative fines for 2024:

• Failure to fulfill the obligation to inform (Article 10): Fines range from 47,303 TL to 946,308 TL.
• Failure to ensure data security (Article 12): Fines range from 141,934 TL to 9,463,213 TL.
• Non-compliance with Board decisions (Article 15): Fines range from 236,557 TL to 9,463,213 TL.
• Failure to comply with the Data Controllers’ Registry obligations (Article 16): Fines range from 189,245 TL to 9,463,213 TL.

Conclusion

The protection of personal data in Türkiye is a critical issue supported by various legal instruments, and recent amendments have brought Turkish law closer to the General Data Protection Regulation (GDPR). However, as technology evolves, it is crucial to continually update these laws through new regulations and decisions issued by the Personal Data Protection Authority (KVKK).

While these regulations have bolstered consumer trust and spurred growth in sectors like e-commerce, they also impose significant compliance costs, particularly on SMEs, and have the potential to slow innovation. The lack of an adequacy decision from the European Commission underscores the need for further reforms in Türkiye’s data protection framework to fully align with EU standards. Achieving this alignment would not only simplify data transfers with the EU but also strengthen Türkiye’s position in the global digital economy.

Moreover, the economic impacts are multifaceted. On one hand, they drive new opportunities in data management and cybersecurity; on the other, they challenge businesses to balance compliance with innovation and competitiveness, particularly in international markets.

As Türkiye continues to adapt its laws and enforcement mechanisms, the role of the KVKK and the courts will be crucial in ensuring that individuals’ rights are adequately protected while also supporting economic growth and innovation. By maintaining and updating these frameworks, Türkiye can effectively balance the need for robust privacy standards with the demands of a dynamic, competitive economy in the digital age.