Data Protection Law in Turkey: Compliance Requirements for Companies

Introduction

With the rapid expansion of digital business models, e-commerce platforms, fintech applications, SaaS services, and cloud-based operations, personal data protection has become one of the most critical regulatory areas for companies operating in Turkey.

Turkey’s Personal Data Protection Law (KVKK – Law No. 6698) entered into force in 2016 and is largely inspired by the EU General Data Protection Regulation (GDPR). Although not identical to GDPR, KVKK imposes strict obligations on companies processing personal data.

For both domestic and foreign investors operating in Turkey, compliance with data protection law is not optional. Administrative fines, reputational risks, and operational restrictions may arise from violations.

This article provides a comprehensive overview of data protection law in Turkey, focusing on compliance requirements, cross-border data transfer rules, sanctions, and risk mitigation strategies.


1. Legal Framework

Data protection in Turkey is governed by:

  • Personal Data Protection Law (KVKK) No. 6698
  • Secondary regulations and communiqués
  • Decisions of the Turkish Data Protection Authority (KVKK Authority)

The Data Protection Authority is responsible for supervision and enforcement.


2. Scope of Application

KVKK applies to:

  • Natural and legal persons processing personal data
  • Public and private sector entities
  • Companies established in Turkey
  • Foreign companies processing data of individuals located in Turkey

There is no general exemption for small companies.


3. Definition of Personal Data

Personal data means:

Any information relating to an identified or identifiable natural person.

Examples include:

  • Name, surname
  • ID number
  • Contact details
  • IP address
  • Biometric data
  • Financial information

Sensitive personal data includes:

  • Health data
  • Biometric data
  • Political opinions
  • Religious beliefs

Sensitive data requires stricter protection.


4. Data Controller and Data Processor

KVKK distinguishes between:

Data Controller

Entity determining purposes and means of processing.

Data Processor

Entity processing data on behalf of controller.

Primary responsibility lies with data controller.


5. Lawful Grounds for Data Processing

Personal data may be processed if:

1️⃣ Explicit consent is obtained
OR
2️⃣ One of the legal bases applies, such as:

  • Performance of a contract
  • Compliance with legal obligation
  • Protection of legitimate interests
  • Establishment or defense of legal claims

Consent must be:

  • Freely given
  • Specific
  • Informed

6. Sensitive Personal Data Processing

Sensitive data requires:

  • Explicit consent
    OR
  • Specific statutory authorization

Additional security measures are mandatory.


7. Data Controller Registry (VERBIS)

Certain companies must register with:

  • Data Controllers Registry (VERBIS)

Registration obligation depends on:

  • Number of employees
  • Annual balance sheet size
  • Nature of data processed

Failure to register may result in fines.


8. Obligation to Inform (Privacy Notice)

Data controllers must provide:

  • Clear privacy notices
  • Information about processing purpose
  • Legal basis
  • Data retention period
  • Data subject rights

This obligation applies at time of data collection.


9. Data Subject Rights

Individuals have rights including:

  • Access to data
  • Correction
  • Deletion
  • Restriction of processing
  • Compensation for damages

Companies must respond to requests within 30 days.


10. Cross-Border Data Transfers

Cross-border transfer is strictly regulated.

Data may be transferred abroad if:

  • Explicit consent obtained
    OR
  • Adequate protection exists in destination country

Turkey requires:

  • Either adequacy decision
  • Or data transfer commitment approval by Authority

This area has evolved significantly in recent reforms.


11. Data Retention and Deletion

Companies must:

  • Establish data retention policy
  • Delete data when purpose ceases
  • Conduct periodic destruction

Unnecessary data storage is unlawful.


12. Data Security Obligations

Data controllers must implement:

  • Technical safeguards
  • Administrative measures
  • Access control systems
  • Encryption
  • Employee training

Security breach may trigger mandatory notification.


13. Data Breach Notification

In case of data breach:

  • Authority must be notified without undue delay.
  • Affected individuals must be informed.

Failure to notify may increase sanctions.


14. Administrative Sanctions

KVKK violations may result in:

  • Administrative fines
  • Suspension of processing
  • Reputational damage

Fines are updated annually.

Repeated violations may trigger heavier penalties.


15. Employment Data Processing

Employers process employee data for:

  • Payroll
  • Social security
  • Performance monitoring

Employee consent may not always be sufficient due to imbalance of power.

Legal basis must be carefully assessed.


16. Marketing and E-Commerce Compliance

Direct marketing requires:

  • Consent under electronic communication regulations
  • Clear opt-out mechanisms

E-commerce platforms must comply with both KVKK and consumer law.


17. Interaction with GDPR

Although KVKK is inspired by GDPR:

  • It is not identical.
  • Cross-border transfer regime differs.

Companies operating internationally must align compliance strategies.


18. Risk Areas for Companies

Common compliance gaps include:

  • Missing privacy notices
  • Lack of written data processing agreements
  • Improper cross-border transfer
  • Incomplete security measures

Regular compliance audits are recommended.


19. Practical Compliance Steps

Companies should:

  • Conduct data mapping exercise
  • Prepare privacy policy
  • Draft data processing agreements
  • Register with VERBIS (if required)
  • Establish breach response protocol

Legal review is strongly advised.


Conclusion

Data protection law in Turkey has become a central regulatory concern for companies operating in digital and data-driven environments. The Personal Data Protection Law (KVKK) imposes significant obligations on data controllers, particularly regarding lawful processing, cross-border data transfer, security measures, and transparency.

For foreign investors and multinational companies, compliance with Turkish data protection rules is essential to avoid administrative sanctions and operational disruptions. With appropriate compliance frameworks and proactive risk management, companies can ensure lawful data processing while maintaining consumer trust and regulatory security.

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