The regulator is assessing whether the alleged conduct violates Law No. 5 on the Prohibition of Monopolistic Practices and Unfair Business Competition.
Indonesia's antitrust watchdog said on Thursday it is in the final stage of its investigation into alleged monopolistic practices involving the TikTok Shop-Tokopedia ecosystem and expects the case to proceed to a hearing before the commission panel.
According to Deswin Nur, head of public relations and cooperation at the Business Competition Supervisory Commission (KPPU), investigators are completing the case file before submitting it to the commission for adjudication.
"The case is still in the investigation stage. Once the case file and investigation report are completed, it will proceed to a hearing,"
Deswin told reporters in Jakarta.
The development marks a significant step forward from the earlier fact-finding stage, when the KPPU was verifying the complaint and gathering information from relevant parties.
The investigation stems from a complaint filed on April 15 by the E-commerce Logistics Entrepreneurs Association (APLE), which alleged that the integration of TikTok Shop and Tokopedia created an unfair competitive advantage through control of Indonesia's digital commerce ecosystem.
The association argued that the integration of the e-commerce platform, payment system, promotional tools, and logistics services could limit competition by disadvantaging rival businesses. The complaint alleges potential anti-competitive practices, including self-preferencing, vertical integration, and restrictions on the choice of logistics service providers.
The KPPU is assessing whether the alleged conduct violates Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition.
Under KPPU Regulation No. 2 of 2023, an investigation may last up to 30 days, with a one-time extension of up to 30 additional days if necessary. If investigators determine that sufficient evidence exists, the case will be referred to a commission panel for hearings.
When approving TikTok's acquisition of Tokopedia in January 2024, the KPPU imposed several conditions, including maintaining open access to payment and logistics services, prohibiting self-preferencing, and preventing predatory pricing to safeguard competition in Indonesia's digital commerce market.
Source: Jakarta Globe
