The move against the paper, which is linked to an opposition cleric, heightened concerns over deteriorating press freedoms in the country.
Police dispersed protesters who had gathered outside of the opposition Zaman newspaper's Istanbul headquarters before breaking down a gate and entering the building to escort the court-appointed managers and evict newspaper workers.
The court action against Zaman newspaper was brought by a public prosecutor and came amid an intensified government campaign against the moderate Islamic movement led by US-based cleric Fethullah Gulen. It accuses the movement of attempting to bring down the government.
Zaman Editor-in-Chief Abdulhamid Bilici addressed his colleagues on the grounds of the newspaper before police had stormed the building.
He called the court decision a "black day for democracy" in Turkey as journalists and other newspaper workers held up signs that read: "Don't touch my newspaper" and chanted "free press cannot be silenced!"
Today's Zaman chief editor, Sevgi Akarcesme, broadcast the police raid on Periscope before police confiscated her phone.
"I see this as an extremely serious interference with media freedom which should have no place in a democratic society," said Nils Muiznieks, the Council of Europe Commissioner for Human Rights. "It is the latest in a string of unacceptable and undue restrictions of media freedom in Turkey."
Reporters without Borders issued a strongly-worded statement, accusing President Recep Tayyip Erdogan of "moving from authoritarianism to all-out despotism."
The US-based watchdog, Freedom House, called on the European Union and the United States to speak out against the move.
"The appointment of trustees to runZamanamounts to a government takeover of a private media outlet, and is a flagrant violation of both rule of law and freedom of the press," said Daniel Calingaert, Freedom's House executive vice president.
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