Trade minister highlights e-commerce challenges on social media platforms
Turkish Trade Minister Omer Bolat and European Commission Vice President Valdis Dombrovskis (not seen) hold a joint press conference, Belgium on July 08, 2024. (AA Photo)
Trade Minister Omer Bolat pointed out that transactions conducted via Instagram and similar social media platforms, which occur through direct communication tools like phone calls or WhatsApp, do not fall under the definition of electronic commerce. As a result, these sales are not subject to electronic commerce regulations and laws.
“Sales made through direct communication tools on promotions made on Instagram and similar social media platforms are not qualified as electronic commerce and are not covered by the relevant law,” he said.
Bolat informed that the decision to block access to Instagram’s social media platform may have negative effects on e-commerce.
Bolat highlighted the Law on the Regulation of Electronic Commerce, which governs commercial activities on platforms like Trendyol, Hepsiburada, and Yemeksepeti. This law also applies to businesses selling their goods and services through these marketplaces or their own e-commerce environments.
Bolat said that any commercial transaction must be carried out without physically meeting or using direct communication tools like the telephone, and the purchase and sale contract or order must be placed electronically to be considered electronic commerce as per the law.
Bolat stated that social media platforms such as Instagram allow businesses and individuals to promote their goods and services.
“We do not enter into a contract for the provision of goods or services on Instagram. We conduct the purchase and sale transaction by reaching out through a phone number or the WhatsApp application. As a result, the relevant law does not classify sales made through direct communication tools on Instagram and similar social media platforms as electronic commerce.”
‘Unrecorded sales cause a decrease in tax revenues’
Emphasizing that sales made on Instagram, which are usually unregistered, cause a decrease in tax revenues, Bolat said, “These sellers provide an advantage by creating unfair competition against businesses that fulfill their legal obligations. Since it is not possible to reach these sellers, consumer victimization may occur in problems that arise during or after the sale.”
