On today’s news sites, it is mentioned that Booking.com which is one of the biggest online reservation platforms considers agreeing to open a representative office and pay tax in Turkey. According to the information obtained from news, Booking.com will pay %7,5 of its Turkey turnover as a digital tax.
In parallel with the legal opinion prepared by Dr. Hamdi Pınar at TURSAB’s request, Booking.com website has been blocked in 2017 because of its negligence in fulfilling its obligations arising from the Turkish Commercial Code, Travel Agents and Association of Travel Agents Act (Law No. 1618) and tax legislation and its consequent attainment of significant competitive advantage against its competitors led to unfair competition. Following the Booking.com’s decision to open a representative office in Turkey, access permission will probably come up soon.
As can be seen from the example of Booking.com, the development of new business models of the digital economy, which has become widespread thanks to the internet, can bring new legal discussion topics. Such new business models must be defined legally, and new legal solutions must be produced in accordance with them. Certainly, the proper functioning of new business models of the digital economy within legal limits will be in the best interest of all stakeholders.
Like all other legal persons, Booking.com and these kinds of companies have also the opportunity to avail itself of the fundamental rights and freedoms stated in the Constitution of the Turkish Republic. Hence, it has the freedom of establishing private entities, to work and to conclude contracts in accordance with Art. 48 of the Constitution. These freedoms could only be restricted by laws and in accordance with the principle of proportionality according to Art. 13.
The rules on competition, unfair competition -Art. 54 TCL et seq.- and advertising law draw the line and lay down the restrictions of companies’ fundamental rights and freedoms in Turkey. These provisions on competition and unfair competition are the most important means of maintaining and preventing the deterioration of the fair competition order in the market. The aim of competition and unfair competition law is to protect the competition order, competitors, customers and public interest as all market participants. There is no prevention for companies to continue their commercial operations in Turkey with their business models on condition that it observes national legal rules especially on competition, advertising and unfair competition laws.
Booking.com’s decision about opening the office and paying tax demonstrates the importance of the Turkish market for this company and that the company cannot afford to lose this market. Certainly, such a development will also set a precedent for other non-EU countries.
