A New Era in Turkish Personal Data Protection Legislation
Publication | Update:
Jun 2024
Amendments to the Law on the Protection of Personal Data (“Law”) entered into force as of June 1, 2024. Please review our detailed article here about the amendments to the Law.
The main actions to be taken by data controllers within the framework of the amendments are briefly as follows:
1. Providing Appropriate Safeguards for Transfers Abroad
Except for cross-border transfers that are irregular, occur on one or a few occasions, are not continuous and are not in the ordinary course of business of the relevant data controller, data controllers and processors must provide one of the following appropriate safeguards for all cross-border transfers by September 1, 2024:
- Binding Corporate Rules: Data controllers that are part of a multinational group of organizations may prepare binding corporate rules regarding intercompany data transfers in accordance with the guidelines on binding corporate rules to be published by the Personal Data Protection Authority (“Authority”) and submit them to the Personal Data Protection Board (“Board”) for approval. Within the framework of the binding corporate rules approved by the Board, data may be transferred to the parent company and its affiliates located abroad.
- Undertaking: Data exporter and importer may prepare a written undertaking providing adequate protection for personal data in accordance with the Law and the secondary regulations of the Authority, and apply for the permission of the Board. In the existence of a permission by the Board, data may be transferred to the parties of such undertaking(s).
- Standard Contracts: In the absence of the aforementioned approvals and permissions, it is also possible to sign standard contracts that will be announced by the Board. The standard contracts to be announced by the Board must be executed without making any amendments and the standard contracts to be executed must be notified to the Board (with the documents showing the signatures powers of signatories to sign such contracts and notarized Turkish translations of such documents) within 5 business days from the date of execution. The drafts of standard contracts have been published by the Board and the final versions of the contracts are also expected to be announced soon. In order to implement the standard contracts, the final versions shall be waited. On the other hand, as a preliminary preparation when waiting for the final versions, it is extremely important for data controllers which wish to continue their transfers abroad by providing this assurance to map their transfers abroad. These contracts should include the parties, the activities of the data exporter and data importer regarding personal data to be transferred, the relevant groups of data subjects, the scope of the transferred personal data, the legal grounds for the transfers, the frequency of the transfers, the nature of the processing activity, the purposes of the transfer and subsequent processing activities, the retention periods, the recipient groups and the data transferor's Data Controllers' Registry information (if available).
At least one of the above safeguards should also be provided for the subsequent cross-border transfers of personal data.
2. Update of Privacy Notices
New regulations have been made regarding processing of sensitive personal data and new legal grounds have been determined. All data controllers, which are obliged to specify the legal grounds for collecting data in their privacy notices, should update their privacy notices by considering the purposes for collecting such sensitive personal data. For example, employers which collect and process the health data of their employees within the scope of occupational health and safety obligations will no longer need to obtain explicit consent on the grounds that ‘such processing is mandatory for the fulfillment of legal obligations in the fields of employment, occupational health and safety, social security, social services and social aid’. Privacy notices indicating such data based on consent rather than this new legal ground will be misleading.
Similarly, data controllers which provide one of the above-mentioned safeguards for transfers abroad will need to update their privacy notices for transfers covered by the safeguards.
3. Registration of Data Controllers Located outside Turkey
As it is known, all data controllers located abroad which process personal data of natural persons resident in Turkey are required to appoint a representative in Turkey and register their data processing inventories with the Data Controllers Registry. Although there is no change in the Law in this regard, we recommend that foreign data controllers not registered yet complete this process as soon as possible. Otherwise, there is a risk of administrative fines for such data controllers, which may be triggered by notification of standard contracts to the Authority for transfers to those.
If you have any questions or if we can be of any assistance, you can always contact us.
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Objectives and Study Scope
This study has assimilated knowledge and insight from business and subject-matter experts, and from a broad spectrum of market initiatives. Building on this research, the objectives of this market research report is to provide actionable intelligence on opportunities alongside the market size of various segments, as well as fact-based information on key factors influencing the market- growth drivers, industry-specific challenges and other critical issues in terms of detailed analysis and impact.
The report in its entirety provides a comprehensive overview of the current global condition, as well as notable opportunities and challenges.
The analysis reflects market size, latest trends, growth drivers, threats, opportunities, as well as key market segments. The study addresses market dynamics in several geographic segments along with market analysis for the current market environment and future scenario over the forecast period.
The report also segments the market into various categories based on the product, end user, application, type, and region.
The report also studies various growth drivers and restraints impacting the market, plus a comprehensive market and vendor landscape in addition to a SWOT analysis of the key players.
This analysis also examines the competitive landscape within each market. Market factors are assessed by examining barriers to entry and market opportunities. Strategies adopted by key players including recent developments, new product launches, merger and acquisitions, and other insightful updates are provided.
Research Process & Methodology
We leverage extensive primary research, our contact database, knowledge of companies and industry relationships, patent and academic journal searches, and Institutes and University associate links to frame a strong visibility in the markets and technologies we cover.
We draw on available data sources and methods to profile developments. We use computerised data mining methods and analytical techniques, including cluster and regression modelling, to identify patterns from publicly available online information on enterprise web sites.
Historical, qualitative and quantitative information is obtained principally from confidential and proprietary sources, professional network, annual reports, investor relationship presentations, and expert interviews, about key factors, such as recent trends in industry performance and identify factors underlying those trends - drivers, restraints, opportunities, and challenges influencing the growth of the market, for both, the supply and demand sides.
In addition to our own desk research, various secondary sources, such as Hoovers, Dun & Bradstreet, Bloomberg BusinessWeek, Statista, are referred to identify key players in the industry, supply chain and market size, percentage shares, splits, and breakdowns into segments and subsegments with respect to individual growth trends, prospects, and contribution to the total market.
Research Portfolio Sources:
Global Business Reviews, Research Papers, Commentary & Strategy Reports
M&A and Risk Management | Regulation
The future outlook “forecast” is based on a set of statistical methods such as regression analysis, industry specific drivers as well as analyst evaluations, as well as analysis of the trends that influence economic outcomes and business decision making.
The Global Economic Model is covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes,
financing, the labour market and infrastructure.
We aim update our market forecast to include the latest market developments and trends.
Review of independent forecasts for the main macroeconomic variables by the following organizations provide a holistic overview of the range of alternative opinions:
As a result, the reported forecasts derive from different forecasters and may not represent the view of any one forecaster over the whole of the forecast period. These projections provide an indication of what is, in our view most likely to happen, not what it will definitely happen.
Short- and medium-term forecasts are based on a “demand-side” forecasting framework, under the assumption that supply adjusts to meet demand either directly through changes in output or through the depletion of inventories.
Long-term projections rely on a supply-side framework, in which output is determined by the availability of labour and capital equipment and the growth in productivity.
Long-term growth prospects, are impacted by factors including the workforce capabilities, the openness of the economy to trade, the legal framework, fiscal policy, the degree of government regulation.
Direct contribution to GDP
The method for calculating the direct contribution of an industry to GDP, is to measure its ‘gross value added’ (GVA); that is, to calculate the difference between the industry’s total pretax revenue and its total boughtin costs (costs excluding wages and salaries).
Forecasts of GDP growth: GDP = CN+IN+GS+NEX
GDP growth estimates take into account:
Market Quantification
All relevant markets are quantified utilizing revenue figures for the forecast period. The Compound Annual Growth Rate (CAGR) within each segment is used to measure growth and to extrapolate data when figures are not publicly available.
Revenues
Our market segments reflect major categories and subcategories of the global market, followed by an analysis of statistical data covering national spending and international trade relations and patterns. Market values reflect revenues paid by the final customer / end user to vendors and service providers either directly or through distribution channels, excluding VAT. Local currencies are converted to USD using the yearly average exchange rates of local currencies to the USD for the respective year as provided by the IMF World Economic Outlook Database.
Industry Life Cycle Market Phase
Market phase is determined using factors in the Industry Life Cycle model. The adapted market phase definitions are as follows:
The Global Economic Model
The Global Economic Model brings together macroeconomic and sectoral forecasts for quantifying the key relationships.
The model is a hybrid statistical model that uses macroeconomic variables and inter-industry linkages to forecast sectoral output. The model is used to forecast not just output, but prices, wages, employment and investment. The principal variables driving the industry model are the components of final demand, which directly or indirectly determine the demand facing each industry. However, other macroeconomic assumptions — in particular exchange rates, as well as world commodity prices — also enter into the equation, as well as other industry specific factors that have been or are expected to impact.
Forecasts of GDP growth per capita based on these factors can then be combined with demographic projections to give forecasts for overall GDP growth.
Wherever possible, publicly available data from official sources are used for the latest available year. Qualitative indicators are normalised (on the basis of: Normalised x = (x - Min(x)) / (Max(x) - Min(x)) where Min(x) and Max(x) are, the lowest and highest values for any given indicator respectively) and then aggregated across categories to enable an overall comparison. The normalised value is then transformed into a positive number on a scale of 0 to 100. The weighting assigned to each indicator can be changed to reflect different assumptions about their relative importance.
The principal explanatory variable in each industry’s output equation is the Total Demand variable, encompassing exogenous macroeconomic assumptions, consumer spending and investment, and intermediate demand for goods and services by sectors of the economy for use as inputs in the production of their own goods and services.
Elasticities
Elasticity measures the response of one economic variable to a change in another economic variable, whether the good or service is demanded as an input into a final product or whether it is the final product, and provides insight into the proportional impact of different economic actions and policy decisions.
Demand elasticities measure the change in the quantity demanded of a particular good or service as a result of changes to other economic variables, such as its own price, the price of competing or complementary goods and services, income levels, taxes.
Demand elasticities can be influenced by several factors. Each of these factors, along with the specific characteristics of the product, will interact to determine its overall responsiveness of demand to changes in prices and incomes.
The individual characteristics of a good or service will have an impact, but there are also a number of general factors that will typically affect the sensitivity of demand, such as the availability of substitutes, whereby the elasticity is typically higher the greater the number of available substitutes, as consumers can easily switch between different products.
The degree of necessity. Luxury products and habit forming ones, typically have a higher elasticity.
Proportion of the budget consumed by the item. Products that consume a large portion of the
consumer’s budget tend to have greater elasticity.
Elasticities tend to be greater over the long run because consumers have more time to adjust their behaviour.
Finally, if the product or service is an input into a final product then the price elasticity will depend on the price elasticity of the final product, its cost share in the production costs, and the availability of substitutes for that good or service.
Prices
Prices are also forecast using an input-output framework. Input costs have two components; labour costs are driven by wages, while intermediate costs are computed as an input-output weighted aggregate of input sectors’ prices. Employment is a function of output and real sectoral wages, that are forecast as a function of whole economy growth in wages. Investment is forecast as a function of output and aggregate level business investment.