ARTICLE
13 March 2020

Online Advertisement And Platform Related Amendments To Turkish Banking Law

EA
Esin Attorney Partnership

Contributor

Esin Attorney Partnership, a member firm of Baker & McKenzie International, has long been a leading provider of legal services in the Turkish market. We have a total of nearly 140 staff, including over 90 lawyers, serving some of the largest Turkish and multinational corporations. Our clients benefit from on-the-ground assistance that reflects a deep understanding of the country's legal, regulatory and commercial practices, while also having access to the full-service, international and foreign law advice of the world's leading global law firm. We help our clients capture and optimize opportunities in Turkey's dynamic market, including the key growth areas of mergers and acquisitions, infrastructure development, private equity and real estate. In addition, we are one of the few firms that can offer services in areas such as compliance, tax, employment, and competition law — vital for companies doing business in Turkey.
Article 150 of the Banking Law was amended, establishing a new tool for combating fake banking advertisements on online mediums.
Turkey Finance and Banking

Recent Development

The amendments ("Amendments") to the Banking Law No. 5411 ("Banking Law") were published in the Official Gazette on February 25, 2020 and entered into force on the same date. The Amendments introduce significant changes to the online advertising practice related to banks.

What's New?

Article 150 of the Banking Law was amended, establishing a new tool for combating fake banking advertisements on online mediums.

  • Under Article 150 of the Banking Law, conducting banking activities without the necessary authorizations is a crime for real and legal persons. The Amendments state that online advertisements implying that the advertisers are conducting banking activities when the advertisers actually lack the proper authorization may result in banning access to the advertisement.
  • Per Article 150, if the crime is committed through the Internet and the content and hosting providers are in Turkey, access to the offending websites are banned. The access ban is in force until a judge lifts the ban.
  • If Article 150 is violated through the Internet and the content and hosting provider is located abroad, the Information Technologies and Communication Authority blocks access to these websites upon the Banking Regulatory and Supervisory Authority's application.

Conclusion

The Amendment introduces a new method to combat fake banking advertisements. However, the part, which introduces access blocking to websites, is ambiguous and may be interpreted as blocking access to entirety of websites, which merely host the online advertisements, rather than blocking access to online advertisements themselves. Therefore, it may create confusion in practice and lead to disproportionate access blocking decisions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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