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Indonesian Competition Commission Probes Shopee Over Alleged Monopolistic Practices

 |  February 19, 2024

In a bid to ensure fair competition in the Indonesian e-commerce landscape, the Indonesian Competition Commission (KPPU) has launched an investigation into Shopee, one of the leading online marketplaces in the country. The move comes in response to allegations of monopolistic practices leveled against Shopee, with the antitrust body probing the platform’s alleged preference for its affiliated shipping companies, particularly Shopee Xpress.

According to Deswin Nur, spokesperson for the KPPU, the investigation was initiated following complaints that Shopee automatically directs users to its in-house logistics service, effectively limiting consumers’ options to choose courier services from other companies based on their preferred prices. Nur emphasized that such practices have resulted in a notable surge in shipping volume for Shopee’s affiliated companies, particularly benefiting Shopee Xpress.

“This move prevents consumers from choosing courier services from other companies at desired prices,” explained Nur, shedding light on the concerns raised by consumers and market observers alike.

The investigation is currently underway, with the case awaiting trial. If found guilty of anticompetitive behavior, Shopee could face significant penalties under Indonesian antitrust laws. According to the KPPU spokesperson, the company could be subject to a minimum fine of 1 billion rupiah (approximately US$64,000). Moreover, Shopee may also face more severe penalties, including fines of up to 50% of the net profits or 10% of total sales earned during the period of the violation.

Source: Techinasia