Are sales made through Instagram considered e-commerce?

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Lerato Khumalo

Minister of Trade Ömer Bolat made evaluations regarding the claims that the decision to block access to the social media platform Instagram could have negative effects on e-commerce.

Pointing to the Law on the Regulation of Electronic Commerce, Bolat said that the commercial activities of marketplaces such as Trendyol, Hepsiburada and Yemeksepeti and businesses that sell their own goods and services in these marketplaces or in their own electronic commerce environment are regulated in the said law.

Bolat stated that in order for any commercial transaction to be considered electronic commerce and fall within the scope of the said Law, it must be carried out without physical confrontation or using direct communication tools such as telephone, the purchase and sale agreement must be made electronically or the order must be given electronically.

Stating that social media platforms such as Instagram allow businesses and individuals to promote their goods and services, Bolat noted:

“The contract for the supply of goods or services is not made through Instagram. The purchase and sale transaction is carried out by contacting via a phone number or WhatsApp application. Therefore, sales made through direct communication tools upon promotions made on Instagram and similar social media platforms are not considered electronic commerce and are not covered by the relevant Law.”

“UNREGISTERED SALES CAUSE TAX REVENUES TO DECREASE”

Bolat, who emphasized that sales made via Instagram, which are usually unregistered, cause tax revenues to decrease, said, “These sellers gain an advantage by creating unfair competition against businesses that fulfill their legal obligations. Since it is not possible to reach these sellers, consumer grievances may occur in problems that arise during or after the sale.”