Indonesian Regulator To Probe Gojek-Tokopedia Deal

Indonesia’s antitrust agency said it wants to take a look at the history-making merger between two of the country’s startups to guard against monopolistic practices.

As US News & World Report wrote on Thursday (May 20), the KPPU plans to scrutinize the multi-billion-dollar merger between the eCommerce company Tokopedia and the ride-hailing and payments company Gojek, the largest deal in the country’s history.

Once final, the merger will create the GoTo Group, the largest privately-held tech company in the region, a business providing  — among other things — ride-hailing, couriers, financial services, online shopping and food delivery. Neither company had responded to requests for comment, the story said.

The KPPU said it will review the merger to “focus on various relevant markets in the GoTo Group ecosystem, as well as the potential for monopolistic practices or unfair business competition that can arise after the transaction.”

The agency said that digital market transactions usually involve a complex network effect analysis. The KPPU called on other business owners and members of the public to report violations of business competition rules once the GoTo Group is formed.

But even if the KPPU determines that the merger could lead to unhealthy business competition, that won’t derail the deal, US News noted. Rather, the GoTo Group will be instructed to adjust its operations to promote fair competition.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.