Navigating Türkiye’s Evolving Tech & Data Compliance Landscape

Türkiye has introduced significant legal compliance reforms in 2024–2025 that transform its data protection and cybersecurity landscape. For global technology companies engaging Turkish consumers or operations, these developments demand a proactive, compliance-by-design strategy. New regulations align local laws more closely with EU standards (e.g. GDPR) while adding unique local obligations, from data controller registration (VERBİS) to cybersecurity audits. This high-level overview outlines key legal changes – in data privacy (KVKK reforms and GDPR alignment), cross-border data transfers, VERBİS registration, cybersecurity law, encrypted communications compliance, and emerging AI governance – and suggests how large tech enterprises can manage multi-jurisdictional compliance effectively. The goal is to demonstrate an understanding of both global tech business models and Türkiye’s regulatory specifics, positioning the firm’s Turkish technology & data practice as a knowledgeable partner for general counsel, privacy officers, and chief risk officers at major tech companies.

Data Protection Reforms (2024–2025): KVKK Alignment with GDPR

Türkiye’s Personal Data Protection Law (KVKK) has undergone major updates in 2024 to better align with the EU’s GDPR. These reforms address long-standing challenges and modernize the framework for data processing and privacy rights. Notably, the amendments (effective June 2024) expanded lawful bases for processing – especially for sensitive personal data – removing previously strict consent-only rules and allowing processing under conditions mirroring GDPR principles. The updated law emphasizes core data protection principles such as fairness, purpose limitation, data minimization, and security, bringing Turkish practice closer to international standards. It also introduced new data subject rights (e.g. potentially data portability and objection rights) and clarified that data processors (not just controllers) bear direct compliance obligations, a shift that aligns with GDPR’s shared controller/processor liability. Crucially, administrative fines have increased and enforcement is on the rise – the KVKK Authority can now levy penalties up to around TRY 13.6 million (≈€700k) for serious violations like failing data security or registration duties. In short, Türkiye’s data privacy regime is becoming more robust and globally interoperable, signaling to enterprises that data privacy compliance in Turkey must meet a high bar.

Cross-Border Data Transfers: New SCCs and Global Data Flows

One of the most impactful KVKK reforms is the overhaul of cross-border data transfer rules. Previously, transferring personal data from Türkiye to other countries was extremely restrictive – companies had to either obtain explicit consent from each data subject or get the Data Protection Authority’s approval for a custom undertaking, a process so impractical that only a handful of approvals were ever granted. In 2024, Türkiye introduced a streamlined regime aligned with GDPR, greatly facilitating international data flows. Now, if no country adequacy decision exists (and to date Türkiye hasn’t declared any country as “adequate”), companies can rely on Standard Contractual Clauses (SCCs) published by the KVKK Authority to export data. These SCC-like standard agreements function akin to EU SCCs, allowing data to be transferred abroad with contractual safeguards – the key requirement is that the controller or processor must notify the Authority within 5 business days of executing the clauses (no advance permission needed). Additionally, Binding Corporate Rules (BCRs) are now formally recognized; multinational tech companies can adopt internal data transfer policies approved by the Turkish regulator to move personal data within their corporate group. The law also permits narrow derogations for occasional transfers (e.g. one-time transfers necessary for a contract or with explicit informed consent) similar to GDPR’s approach, but these are only for exceptional cases, not routine operations. As of September 1, 2024, explicit consent is no longer accepted as a regular mechanism for repetitive transfers, compelling companies to switch to SCCs, BCRs or other approved tools for continuous data exports.

For enterprise tech firms, these changes mean global data infrastructure can be integrated with Türkiye’s requirements rather than siloed. For example, a U.S.-based cloud provider serving Turkish users might incorporate KVKK-standard clauses into its existing data processing addendum, creating a seamless framework for EU and Turkish data transfers. Standard contractual clauses for data exports provide predictability – but firms must remember the Turkey-specific nuance of regulator notification (within 5 days of signing an SCC) to avoid penalties. It’s wise to conduct transfer impact assessments and maintain documentation just as one would under GDPR, since Turkish regulators will expect evidence of diligence. Illustrative scenario: A U.S. healthcare software company that previously relied on blanket patient consent to send data to U.S. servers had to pivot once Türkiye’s 2024 reform took effect. The firm implemented the KVKK’s new model contract clauses with its Turkish subsidiary and duly notified the Authority within the required 5-day window, thereby legitimizing ongoing transfers. This swift adjustment not only ensured compliance but also safeguarded the company’s regional operations from interruption.

VERBİS Registration and Local Compliance Obligations

A foundational pillar of Turkey’s data compliance regime is the Data Controllers’ Registry (VERBİS). Many organizations are obliged to register with VERBİS and log their data processing inventory, a transparency measure overseen by the KVKK Authority. Generally, any company with 50+ employees or over TRY 100 million annual balance sheet, or those processing special categories of data, must register – and this applies equally to foreign data controllers processing Turkish personal data. (In fact, foreign companies with no local legal entity but handling Turkish user data are considered data controllers in Turkey and must appoint a representative to register on VERBİS.) Recent updates in 2025 slightly expanded exemptions for very small enterprises – for instance, controllers with <10 employees and <TRY 10 million turnover are now exempt even if they handle sensitive data, whereas previously any sensitive-data-centric business had to register. However, these exemptions mainly relieve small domestic startups; large tech companies will unequivocally fall under the registration mandate.

The importance of VERBİS compliance cannot be overstated. It demonstrates accountability by requiring companies to declare what data they collect, why, how long they retain it, etc., in an online registry available for regulatory scrutiny. Turkish authorities have actively enforced this obligation – failure to register or late registration can incur hefty fines for each year of non-compliance. Notably, in one case a foreign firm with only a minor presence in Türkiye was fined for a delay of just a couple of months in registering. The message is clear: even minimal or exploratory operations (for example, a tech company with a pilot program or a small Turkish user base) must “front-load” compliance by registering from day one. Illustrative scenario: A global e-commerce retailer expanding into Turkey neglected to register in VERBİS, assuming their limited local activities might be exempt. Turkish regulators identified the oversight and imposed fines for each year the company operated without registration. The company quickly filed its VERBİS entry and updated internal records, but learned the hard lesson that any handling of Turkish customer data – no matter the scale – triggers this mandatory legal compliance step. The strategic takeaway for tech multinationals is to include VERBİS registration in the launch checklist for Turkish market entry or any Turkey-facing data project.

Cybersecurity Law No. 7545: New Obligations for Critical Infrastructure and Tech Firms

In March 2025, Türkiye enacted its first comprehensive Cybersecurity Law (Law No. 7545), marking a new era in cyber regulation. This law establishes an overarching framework to protect networks, systems, and critical infrastructure against cyber threats. It applies broadly to “individuals and legal entities… active in cyberspace,” which effectively means any organization operating information systems connected to the internet or telecom networks – a scope that includes virtually all tech companies. The law created a centralized Cybersecurity Authority (the “Cybersecurity Directorate/Presidency”) and a multi-agency Cybersecurity Board to coordinate national cyber strategy. Together, these bodies set cybersecurity standards, certify cyber products, oversee incident response teams, and can designate certain sectors or companies as “critical infrastructure” subject to special oversight.

For large technology enterprises, several enterprise-specific obligations arise from Law 7545:

• Mandatory Cybersecurity Measures: All service providers and data processors must implement the cybersecurity measures promulgated by the new Directorate. This includes cooperating with authorities by sharing information or documents upon request, conducting risk assessments, and remedying vulnerabilities proactively. If your business provides essential digital services (cloud computing, fintech, etc.), you should expect sector-specific standards (e.g. minimum encryption levels, network monitoring tools) to be imposed under this law.
• Critical Infrastructure Compliance: If the government classifies your operations as part of a critical sector (e.g. communications platforms, cloud services supporting banking or energy sectors), additional requirements kick in. The law mandates regular penetration testing and security audits for entities in designated critical infrastructure sectors. Companies might need to form internal Cyber Incident Response Teams or coordinate with national CERTs (called “SOME” teams in Turkey). They must also report any cybersecurity incidents or even significant vulnerabilities immediately to the authorities. Tech giants operating cloud data centers or big data platforms in Turkey should evaluate if they fall under “critical infrastructure” – if so, investing in enhanced resilience (redundancies, disaster recovery drills, executive oversight for security) is now a legal obligation, not just IT best practice.
• Certification of Cyber Products and Vendors: Law 7545 introduces a form of digital product certification for cybersecurity. Companies that produce cybersecurity software, hardware or services must obtain approval from the Cybersecurity Directorate before offering those products in Turkey, and even get consent for exporting such products abroad. Mergers or share transfers of cyber product companies require notification or approval to prevent unvetted entities from controlling critical cyber tools. In practice, if a tech firm sells network security appliances, encrypted communication tools, or other “cyber” solutions in Turkey, it will need to ensure those products meet Turkish certification criteria and that any local partner or subsidiary is authorized. This might involve undergoing audits of the product’s security features or embedding local cryptographic standards. The “security by design” principle becomes quasi-mandatory – products should be built to satisfy these certifications from the ground up.
• Severe Penalties for Non-Compliance: The cybersecurity law has teeth. Operating a covered cyber business without the required authorization can lead to 2–4 years imprisonment for responsible executives and fines up to 1–2 thousand days (translating to millions of lira). Companies that fail to implement mandated security measures or to report incidents can face administrative fines ranging from TRY 100,000 up to TRY 1,000,000 – or in serious cases, up to 5% of annual gross turnover. For a tech giant, a 5% of turnover fine could reach tens of millions of dollars, a significant enforcement risk. Additionally, causing a cyber incident that compromises critical infrastructure data can trigger criminal liability (potential jail terms). The law clearly intends to incentivize robust compliance through these tough sanctions.

Overall, Law 7545 means that cybersecurity compliance is now a board-level concern for any major tech company in Türkiye. Firms should swiftly map their obligations: e.g. appoint a chief information security officer (CISO) for Turkish operations, align incident response plans with Turkish reporting rules, ensure any local data centers or cloud regions follow Turkish standards, and integrate these requirements with global cybersecurity programs (so that Turkish rules are not overlooked). Encouragingly, Turkey’s approach doesn’t exist in a vacuum – it complements KVKK’s data protection regime. Both aim to protect data confidentiality and system integrity, so a unified compliance program can cover both by design. For instance, encryption and access controls implemented for KVKK can satisfy many cybersecurity law expectations as well. By treating Turkish cybersecurity law as part of the broader international compliance mosaic, tech companies can manage it without reinventing the wheel.

(No specific case study is public yet for the brand-new law, but one can imagine: A multinational cloud provider identified as critical infrastructure might be required to undergo an annual government-led penetration test and certify its datacenter’s compliance. Early engagement with the Cybersecurity Authority to clarify expectations could turn what might seem like a burden into a collaborative security improvement process, reinforcing the provider’s resilience and trust with Turkish clients.)

Encrypted Communications and Telecom Compliance (Law 5809)

In addition to data protection and cybersecurity laws, tech companies must heed Turkey’s regulations on encrypted communications. Strong encryption is encouraged for data security (and indeed expected under KVKK’s security measures), but providing encryption services to the public triggers legal obligations. Under the Electronic Communications Law (No. 5809) and secondary regulations, any entity that offers “coded or encrypted communication” services in Turkey must register and comply with rules set by the Information and Communication Technologies Authority (BTK). A specific regulation titled “Principles Regarding Coded or Encrypted Communications” requires service providers to notify the BTK and furnish technical details of their encryption systems. In practice, this means if a tech company launches an end-to-end encrypted messaging app, voice application, or even sells devices with encryption features in Turkey, it likely needs to obtain authorization from BTK and possibly provide decryption keys or lawful intercept access to the authorities. The rationale is to prevent completely untraceable communication channels; Turkey, like many countries, seeks to balance user privacy with law enforcement needs.

Non-compliance with the encryption law can result in serious penalties. Distributing encryption technology or running an encrypted service without authorization is punishable by fines up to 3% of the operator’s annual revenue and can even lead to imprisonment for responsible officers (per Articles 60–63 of Law 5809). These sanctions are comparable to those for telecom companies, underscoring that encrypted app providers are viewed under telecom law akin to traditional carriers. Importantly, simply using encryption internally or to secure customer data is not restricted – Turkish regulators actually recommend robust encryption (e.g. use of internationally recognized encryption algorithms, TLS for data in transit, cryptographic protection for cloud data) as a best practice for KVKK compliance. The law’s target is providers of encryption services, not ordinary business use of encryption.

Enterprise tech companies should assess whether any of their offerings or infrastructure fall under these rules. For example, a global social media company with an encrypted messaging feature, or an enterprise software firm offering encrypted communications between devices, should consult Turkish counsel to determine if a BTK notification or license is needed. Often, compliance may involve registering the service, disclosing encryption algorithms/keys to regulators, or even partnering with a local licensed telecom entity to host the service. While this may raise policy questions (and business decisions about whether to offer certain features in Turkey), ignoring the requirement is not wise given the enforcement bite. Illustrative scenario: A startup offering end-to-end encrypted chat apps prepared to launch in Turkey. Aware of Law 5809, they proactively engaged with BTK – registering their app, providing the necessary cryptographic key information to enable lawful interception, and getting regulatory clearance. By doing so, they avoided legal risks and were able to market their service as fully compliant, which built trust among enterprise clients who might integrate the app. By contrast, if they had launched without clearance, they could have faced shutdowns or penalties that would derail their product’s success. The lesson for big tech is clear: encrypted communications compliance is a unique local checkpoint for Turkey – one that can be managed through early strategy (perhaps offering an alternate compliance mode or working within Turkey’s regulatory sandbox, if available, for new secure communication technologies).

Enterprise Considerations: Data Infrastructure, Cloud, AI, and Emerging Tech

Modern technology businesses operate complex data infrastructures – spanning cloud services, AI-driven platforms, and cross-border data ecosystems. Türkiye’s regulations increasingly address these domains, creating enterprise-specific compliance considerations:

• Cloud and Data Infrastructure: Global cloud providers and any company relying on cloud storage must ensure their data infrastructure in relation to Turkey meets local standards. This involves a few layers. First, data residency and transfer: as discussed, storing or backing up Turkish personal data on international cloud servers now requires an approved safeguard (SCCs, BCRs, etc.), so cloud arrangements should be reviewed for KVKK compliance. Second, security expectations: Turkish regulators expect strong protection for personal data in the cloud – recent guidance urges encryption of personal data stored in cloud systems and multi-factor authentication for access. Enterprise IT teams should implement these measures (they not only satisfy KVKK’s mandate to take “all necessary technical and organizational measures” to secure data, but also guard against cyber incidents under Law 7545). Third, local presence: while Turkey doesn’t have a blanket data localization law for private-sector data, certain sectors (e.g. banking, public health) have rules requiring local hosting or use of government networks (for instance, healthcare providers must use the government-run KamuNet network for transmitting medical data). Tech companies serving those industries must build compliance into their architecture – possibly establishing local data centers or partnering with Turkish cloud providers for certain sensitive workloads. Incorporating these requirements early (designing products with flexible data storage options, or offering data localization as a feature) can make compliance a selling point rather than a hurdle.
• Artificial Intelligence (AI) and Machine Learning: While AI is not explicitly regulated under KVKK beyond general data protection principles, Türkiye is actively developing an AI regulatory framework. The National AI Strategy 2021–2025 lays out a vision for fostering AI innovation with an emphasis on ethics and governance. More concretely, a draft Artificial Intelligence Law was submitted to Parliament in June 2024 which, if enacted, will impose specific obligations on AI system providers and users. The draft law aligns with the EU’s risk-based approach (mirroring the proposed EU AI Act) – it defines high-risk AI systems, mandates risk assessments and auditing for those systems, requires registration with authorities for certain AI applications, and even contemplates sanctions proportional to company turnover for non-compliance. This is forward-looking but significant for tech giants: it means that AI-driven products (like facial recognition features, algorithmic decision-making tools, AI in healthcare or finance) may soon need Turkey-specific risk controls and possibly government registration or certification. In anticipation, companies should adopt compliance-by-design for AI – e.g. ensure their AI systems built for global use include audit logs, bias testing, transparency features, and opt-outs for users in Turkey, aligning with emerging global norms. Moreover, sectoral regulators in banking and other areas already issue guidelines on AI (e.g. discouraging opaque algorithms in credit scoring). Keeping an eye on these trends and engaging in Turkey’s regulatory sandbox programs or pilot compliance initiatives can be strategic. In essence, integrating legal tech solutions that can audit AI decisions or explain AI outcomes might become part of the compliance toolkit for operating in Turkey’s market.
• Encryption Technologies and Digital Product Certification: Tech companies dealing in encryption (beyond communications services discussed earlier) should note the interplay of laws when deploying encryption-based products in Turkey. If your product is a cybersecurity tool (like VPN software, encrypted databases, IoT security chips), Law 7545’s vendor authorization requirements kick in – you may need certification from the Cybersecurity Authority before offering it. If your product is more general but includes cryptography, consider if any import/export controls or standards apply; Turkey historically controlled import of certain encryption hardware, though many restrictions have eased for commercial products. The key is to design products to meet global crypto standards and local certification simultaneously. For example, using NIST-approved encryption algorithms would satisfy most international clients and likely Turkey’s criteria as well. It’s also wise to document your encryption implementations thoroughly so you can respond to any technical information requests by regulators (as required under both KVKK security audits and the BTK encryption rules). By building compliance features into the product (like audit trails, admin access for lawful inspection, user consent flows for data encryption keys), enterprises demonstrate a commitment to legal compliance that can smooth regulatory approvals.
• Digital Services and Sectoral Regulations: Beyond the big laws, tech companies should remain cognizant of industry-specific Turkish regulations. For instance, e-commerce and payment services must follow strict ID verification and data security rules set by the financial regulator (BDDK); social media platforms above a user threshold must appoint a local representative and respond swiftly to user requests under the social media law; telecom providers have licensing and data retention obligations; and so on. Many of these intersect with data protection and cybersecurity. A compliance strategy should be holistic – ensuring that meeting KVKK and Cyber Law requirements also positions the company to pass any sectoral regulatory audits. For example, a digital product that gets a cybersecurity “seal of approval” from the new Directorate will likely inspire confidence during any subsequent audit by, say, the banking regulator or competition authority (which in Turkey can also examine data handling in antitrust investigations).

In summary, the enterprise-specific obligations in data infrastructure, cloud, AI, and encryption demand that tech companies treat Turkey as a jurisdiction with its own nuances but within the global compliance tapestry. Firms should proactively adjust their cloud architectures, AI governance policies, and product development cycles to incorporate Turkish requirements – doing so not only avoids legal pitfalls but signals respect for local laws, something that can enhance their brand in the eyes of Turkish consumers and officials.

Compliance-by-Design: A Future-Oriented Strategy

Given the dynamic regulatory environment, major tech companies are best served by a future-oriented, compliance-by-design approach in Turkey. Rather than reacting to individual laws in isolation, companies should embed compliance considerations into their business models and product lifecycles from the outset. This approach resonates strongly with general counsel, chief privacy officers, and risk officers who seek sustainable compliance solutions that scale across jurisdictions.

Key elements of this strategy include:

• Unified Global Compliance Programs with Local Tailoring: Leverage the overlap between Turkey’s laws and international standards. For example, a company’s global privacy program built for GDPR will cover many KVKK obligations (lawful bases, user consent, breach response). By adding Turkey-specific modules – such as VERBİS registration procedures, SCC notification workflows, and BTK encryption registration – the company ensures nothing falls through the cracks. Many firms are implementing centralized legal tech solutions (like compliance management software) to track varying requirements; Turkey’s rules and deadlines (e.g. 72-hour breach notice, 5-day SCC notice) can be input into these systems so that alerts and checklists automatically prompt the local team when needed. A unified approach prevents siloed compliance efforts and helps manage cross-border consistency. For instance, privacy notices and consent forms can be harmonized to meet both GDPR and KVKK language (noting differences like the identity of the Turkish representative, etc.), thus offering users a coherent experience globally.
• Privacy and Security by Design in Products: When engaging Turkish users, design products with privacy and security features that anticipate regulatory scrutiny. This could mean building granular consent management into apps (in case Turkish law continues to require explicit consents in certain scenarios), providing user-friendly data export and deletion tools (to comply with data subject rights), and implementing strong encryption and access controls from day one. By doing so, compliance is not an afterthought but an integral part of the product value proposition. Especially with AI and IoT products, demonstrating that you have considered ethical and legal implications (e.g. by conducting algorithmic impact assessments, or by obtaining certification for your IoT security) can become a competitive advantage. Turkish regulators often appreciate voluntary adherence to high standards – a company that can show it adopted compliance by design will find more open dialogue and possibly lighter touch oversight.
• Continuous Monitoring and Engagement: The period of 2024–2025 is just the start – further developments are on the horizon (e.g. the draft AI law, refinements to KVKK or e-Privacy rules, and evolving guidelines). Tech companies should establish an internal process or designate a Turkey compliance lead to monitor new laws, Board decisions, and enforcement trends. Regular audits of the Turkish operations (or Turkey-related data processes) help catch issues early. Additionally, engaging with regulators and industry groups is valuable: participating in public consultations that Turkey’s authorities hold, or joining industry associations that liaise with the KVKK Authority and Cybersecurity Directorate, can give companies a voice in shaping practical regulations. Many global firms with Turkish presence provide feedback on draft legislation (for example, on AI or fintech regulations) – this not only ensures their concerns are heard but also positions them as constructive corporate citizens.
• Risk Scenarios Planning: General counsel and risk officers should incorporate Turkey-specific scenarios into their crisis planning. For instance, if a data breach occurs that affects Turkish users, have a plan ready to notify the KVKK Authority within 72 hours and inform individuals in Turkish language promptly. Table-top exercises can include a situation where an urgent government request comes in for encrypted data access – how will the company respond while balancing global policy and local law? By simulating these scenarios, companies won’t be caught off guard. As illustrated earlier, one company’s swift breach response and notification allowed it to avoid fines, whereas another that delayed notification was penalized. Preparation and practice make the difference.

Finally, consider that compliance-by-design is also an enabler for business. Turkey’s market, with nearly 90 million people and a young, tech-savvy population, offers huge opportunities for those willing to invest in trust. Demonstrating robust data protection and cybersecurity compliance builds consumer confidence (essential for services like digital payments or health tech where data sensitivity is high). It also smooths B2B relationships – Turkish banks, enterprises, or government agencies will prefer partners who meet local compliance standards. In negotiations, being able to say “our solution already meets KVKK and cybersecurity law requirements” can clinch deals. Thus, a forward-looking compliance strategy is not just legal hygiene but part of a competitive strategy for engaging Turkish businesses and users.