The Turkish Competition Authority (TCA) has published its reasoned decision regarding the investigation into the audiobook platform Storytel, which concluded without imposing any fines. The investigation, initiated following a complaint by Kitapyurdu, focused on Storytel’s agreements with publishers and rights holders, particularly the exclusivity clauses and advance payments in these contracts. The TCA determined that these provisions had the potential to foreclose the market to competitors. However, during the investigation, Storytel submitted commitments to address the competition concerns, which were accepted by the TCA, leading to the closure of the case on November 30, 2023.
How ICR Economic Research Contributed
ICR Economic Research provided critical analysis in two key areas:
- Market Analysis: ICR Economics defined and quantified the relevant market using concrete evidence, assessing the competitive landscape and highlighting opportunities for new entrants. This analysis indicates that despite Storytel’s initially strong market position, the market is still far from saturation, highlighting the growth potential for competitors.
- Exclusivity Analysis based on investments: ICR Economics calculated the Return on Investment (ROI) for each audiobook. The analysis revealed that the average investment in an audiobook requires a longer exclusivity period than what the TCA requests.
ICR Economics concluded that market share data from the number of paid users should not be considered a strong indicator of dominance in this nascent market. The potential for competitor growth supports this conclusion. Additionally, the analysis indicated that removing or limiting exclusivity clauses in agreements could negatively affect future investment incentives, potentially hindering the development of the audiobook market in Turkey.
Project Team
The ICR Economic Research team, led by Ali Ilıcak and Dr. Murat Çetinkaya, supported the legal team representing Storytel, which included attorneys Hakan Özgökçen, Sinan Diniz, Hüseyin Coşgun, Esen Ergül, Ceren Göktürk, Can Sarp Özcan, and İrem Turgut from Esin Attorney Partnership.
