Examination of public tenders with artificial intelligence

The President of the Competition Authority, Birol Küle, evaluated their work to examine public tenders.

Pointing out that providing the goods and services needed by the public at the most affordable prices and in the best quality is crucial for the most efficient use of citizens' taxes, Küle said: “Therefore, ensuring competition in public procurement is one of the issues we are most concerned about. Given that spending on public tenders represents a significant share in our state budget, creating competition in public tenders is an undeniable red line for us.” he said.

Küle explained that maintaining the competitive process in public tenders not only ensures the effective use of public resources, but also directly contributes to the smooth functioning of price formation in the markets.

Stating that in this way competitors compete with each other under fair and equal conditions and ultimately citizens benefit from this process with low prices, high quality, diversity and innovation, Küle said: “Our institution is aware of the crucial role of public tenders in establishing effective competition in the fulfillment of its tasks assigned by the Law on the Protection of Competition. Based on this awareness, we have placed our cooperation with the PPA on a much stronger basis in 2024. With the protocol we signed, we have added a completely new and technological dimension to our testing.” Work.” gave his assessment.

“We make no difference with artificial intelligence tools”

Küle explained that with this collaboration, they are working intensively on developing artificial intelligence-powered tools and joint statistical modeling and analysis to identify competitive risks and possible violations in public tenders, saying:

“We filter the huge data sets that the KCC provides with our artificial intelligence algorithms. We immediately record the behavior of companies that show similar patterns of anti-competitive actions and suspicious patterns. We subject the companies' tender data to an in-depth structural and behavioral analysis. This means we don't make a fool of ourselves with artificial intelligence tools.”

“No one should even think about acting fraudulently in the tender process.”

Küle pointed out that thanks to the infrastructure supported by artificial intelligence, they could very quickly and clearly detect violations such as tender splitting, fraudulent pricing and region splitting, saying:

“I have expressed it many times on various occasions. Our institution's information and auditing infrastructure is extremely strong. We have adapted our auditing capabilities to the speed of development of technologies and the anti-competitive practices of these technologies. Our proactive results will be met with surprise by the companies involved in the violation. Therefore, no one should even think of colluding in tenders or collaborating with their competitors.”

Küle shared the findings they have made in this area and said:

“In public tenders, we uncover all anti-competitive practices one after the other, such as the agreement of bid prices by companies, the exchange of competitively sensitive information with each other, the sharing of tender positions or regions, securing the contract of the contracted company through secondary offers or non-compliance with agreed bids.”

Companies should know that we will not make any concessions on this issue and will decisively address anti-competitive measures in the tendering process. With our high-tech infrastructure and data integration, we do not leave even the smallest breach of competition in tenders in the dark. “The costs for this will be very high for companies.”


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