A PYMNTS Company

Shopee Faces Antitrust Scrutiny Over Courier Service Practices in Indonesia

 |  June 26, 2024

The Komisi Pengawas Persaingan Usaha (KPPU), Indonesia’s antitrust agency, has determined that Shopee has violated the country’s monopoly rules regarding its courier service operations. Shopee, a major player in the Indonesian eCommerce market, operates through two local subsidiaries: PT Shopee International Indonesia and PT Nusantara Ekspres Kilat.

The KPPU’s investigation revealed that Shopee’s local subsidiary breached anti-competition regulations by pressuring customers to use specific delivery firms. Notably, one of these firms had a Shopee Indonesia official on its board of directors, raising concerns about unfair market practices and conflicts of interest.

Read more: Indonesian Competition Commission Probes Shopee Over Alleged Monopolistic Practices

In response to these findings, Shopee has committed to amending its business practices. On June 20, the company submitted a proposal to the KPPU detailing its planned changes in behavior. The antitrust agency has recognized this submission and is currently engaged in discussions with Shopee to ensure the company adheres to lawful operating conditions within Indonesia.

This move by the KPPU highlights the agency’s ongoing efforts to maintain fair competition within the e-commerce sector. The scrutiny of Shopee follows a recent investigation into similar antitrust violations by its rival, Lazada, which also operates extensively in Indonesia.

Source: Marketech