Hepsiburada Provides Update on Recent Regulatory Changes in Turkey

ISTANBUL, July 14, 2022 /PRNewswire/ — D-MARKET Digital Companies & Buying and selling (d/b/a “Hepsiburada”) (NASDAQ: HEPS), a number one Turkish e-commerce platform (referred to herein as “Hepsiburada” or the “Firm”), updates the market on current regulatory adjustments in Turkey.

In its most up-to-date annual report on Kind 20-F (the “Kind 20-F”) filed with the U.S. Securities and Alternate Fee on Could 2, 2022, the Firm knowledgeable its shareholders of potential amendments to the E-commerce Legislation and the anticipated affect that approval of such amendments might have on Hepsiburada’s enterprise and the trade as an entire. See danger issue “Web and e-commerce regulation in Turkey is current and is topic to additional growth” on web page 38 of the Kind 20-F.   On July 1, 2022, the Turkish Parliament authorized an modification to the Legislation on Regulation of E-Commerce (Legislation No.6563) (as amended, the “E-commerce Legislation”) with the goal of stopping unfair competitors, a dangerous aggressive atmosphere and monopolistic business practices within the Turkish e-commerce market. The amendments had been ratified by the President and introduced on the Official Gazette on July 7, 2022, accessible on https://www.resmigazete.gov.tr/07.07.2022.

Hepsiburada believes that the E-commerce Legislation is a vital milestone for the Turkish e-commerce trade meaning to facilitate a extra clear, wholesome and truthful e-commerce market in addition to to forestall the formation of dominant positions on this market.

The provisions of the amendments embody, however usually are not restricted to:

• limits on the entire quantity of promoting and advertising and marketing expenditures and buyer reductions with the objective to forestall e-commerce platforms from gaining an uneven market share by extreme reductions and extreme advertising and marketing through the use of disproportionate financial energy. This provision goes into impact on January 1, 2023;
• restrictions on e-commerce firms with an annual Internet Transaction Worth, (as outlined within the E-commerce Legislation) over a sure threshold (initially and indicatively set at TRY60 billion for the 12 months 2022, which is topic to adjustment yearly based mostly on the combination Internet Transaction Worth generated within the Turkish e-commerce marketplace for the prior calendar 12 months) from partaking in sure enterprise operations, akin to funds and monetary providers. The restrictions additionally restrict specified itemizing actions inside its platform and the availability of last-mile supply providers to 3rd events. This provision goes into impact on January 1, 2024;
• banning the sale of personal label merchandise for all e-commerce firms. This provision goes into impact January 1, 2024; and
• a brand new obligation for e-commerce companies working in Turkey to acquire, and yearly renew, an e-commerce license upon fee of a license charge if such companies exceed sure Internet Transaction Worth and annual order quantity thresholds outlined within the E-Commerce Legislation. The efficient license charge will likely be calculated based mostly on a graduated price of an organization’s Internet Transaction Worth derived from inside Turkey for the prior calendar 12 months, such that the efficient license charge utilized can be the sum of progressively greater proportions of the e-commerce firm’s Internet Transaction Worth exceeding the thresholds specified within the E-commerce Legislation. The relevant marginal charges vary from 0.03% of annual Internet Transaction Worth on the portion of Internet Transaction Worth between the bottom thresholds (initially set at indicative thresholds of TRY10 billion and TRY20 billion for 2022), to 25% of annual Internet Transaction Worth on the portion of Internet Transaction Worth above the very best threshold (initially set at an indicative threshold of TRY65 billion for 2022). This provision goes into impact January 1, 2025.

Along with the brand new provisions summarized above, the amendments redesigned the business phrases within the business agreements with retailers, service provider information entry and portability, using information obtained from clients and retailers, the fee phrases to the retailers as such funds shall be made in full inside 5 working days from the date the order reaches the client in addition to non-compliance penalty quantities with a view to forestall unfair business practices.  These provisions go into impact January 1, 2023. The brand new amendments additionally launched an annual reporting obligation to observe firms’ compliance with the amended provisions of the E-Commerce Legislation.

Hepsiburada is at the moment assessing the operational and monetary affect the implementation of those new amendments could have on the Firm. Nevertheless, based mostly on Hepsiburada’s preliminary evaluate of the E-commerce Legislation, the Firm anticipates that these amendments will create a extra favorable working atmosphere over time, pushed by, amongst different issues, normalizing of selling expenditures and buyer reductions. Additional, Hepsiburada doesn’t anticipate that the brand new amendments will limit its key strategic initiatives akin to funds, monetary providers and last-mile supply providers. Hepsiburada is assured that it’s well-positioned to profit from the potential adjustments out there dynamics because of this laws that are anticipated to make sure a degree enjoying discipline.

About Hepsiburada

Hepsiburada is a number one e-commerce expertise platform in Turkey, combining a globally confirmed e-commerce enterprise mannequin with a one-stop ‘Tremendous App’ to cater to our clients’ on a regular basis wants and to assist make folks’s each day lives higher. Prospects can entry a broad vary of services together with same-day supply of groceries and necessities, merchandise from worldwide retailers, airline tickets and fee providers by our embedded digital pockets, Hepsipay. As on the finish of March 2022, we had seamlessly related 44.2 million members and 82.9 thousand Lively Retailers.

Based in Istanbul in 2000, Hepsiburada was constructed to steer the digitalization of commerce in Turkey. As a female-founded group, we’re dedicated to significant motion to empower ladies. By way of our ‘Know-how Empowerment for Ladies Entrepreneurs’ programme, we have now reached over 32 thousand feminine entrepreneurs throughout Turkey thus far.

Ahead Trying Statements

This press launch contains forward-looking statements throughout the that means of Part 27A of the Securities Act of 1933, as amended, Part 21E of the Securities Alternate Act of 1934, as amended and the Protected Harbor provisions of the US Personal Securities Litigation Reform Act of 1995, together with however not restricted to statements relating to (a) the anticipated timing for the implementation of the amendments to the E-commerce Legislation; (b) the Firm’s expectations relating to its present and future Internet Transaction Values and associated thresholds below the E-commerce Legislation; (c) the potential affect of the E-commerce Legislation on the aggressive panorama within the e-commerce trade through which the Firm operates; and (d) the Firm’s anticipated legal responsibility for licensing charges. These forward-looking statements could be recognized by terminology akin to “could”, “might”, “will,” “expects,” “anticipates,” “goals,” “future,” “intends,” “plans,” “believes,” “estimates,” “targets”, “more likely to”, “forecasts” and related statements.

These forward-looking statements are based mostly on administration’s present expectations. Nevertheless, it’s not potential for our administration to foretell all dangers, nor can we assess the affect of all components on our enterprise or the extent to which any issue, or mixture of things, could trigger precise outcomes to vary materially from these contained in any forward-looking statements we could make. These statements are neither guarantees nor ensures however contain recognized and unknown dangers, uncertainties and different vital components and circumstances that will trigger Hepsiburada’s precise outcomes, efficiency or achievements to be materially totally different from its expectations expressed or implied by the forward-looking statements, together with different developments in Hepsiburada’s enterprise or legislative or regulatory developments. We warning you due to this fact in opposition to counting on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. For a dialogue of extra components that will have an effect on the end result of such ahead trying statements, see our 2021 annual report filed with the U.S. Securities and Alternate Fee (“SEC”) on Kind 20-F (File No.001-40553), and particularly the “Danger Elements” part, in addition to the opposite paperwork filed with or furnished to the SEC by the Firm occasionally. Copies of those filings can be found on-line from the SEC at www.sec.gov, or on the SEC Filings part of our Investor Relations web site at https://traders.hepsiburada.com.  Any such forward-looking statements characterize administration’s estimates as of the date of this press launch. These forward-looking statements shouldn’t be relied upon as representing the Firm’s views as of any date subsequent to the date of this press launch. All forward-looking statements on this press launch are based mostly on info at the moment accessible to the Firm, and the Firm and its licensed representatives assume no obligation to replace these forward-looking statements in mild of recent info or future occasions. Accordingly, undue reliance shouldn’t be positioned upon the forward-looking statements.

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SOURCE HEPSIBURADA