285-2024 (JAKARTA) Indonesia’s anti-trust agency has set its sights on two prominent e-commerce platforms, Shopee and Lazada, launching an investigation into their local units for suspected violations of anti-competition rules.
The Komisi Pengawas Persaingan Usaha (KPPU), or the Business Competition Supervisory Commission, confirmed on Monday that PT Shopee Internasional Indonesia and PT Ecart Webportal Indonesia, which oversee the domestic operations of Shopee and Lazada respectively, are under scrutiny.
While the agency refrained from elaborating on the specific nature of the alleged breaches, the decision to launch formal investigations underscores the regulator’s commitment to ensuring fair competition within Indonesia’s burgeoning e-commerce landscape.
Shopee, owned by Southeast Asian technology giant Sea Ltd, and Lazada, the regional arm of Alibaba, did not immediately respond to requests for comment regarding the KPPU’s probe.
The KPPU revealed that the hearing into Shopee’s conduct will commence on Tuesday, though details regarding potential punitive measures were not disclosed.
In the case of Lazada, the agency stated that it had uncovered early evidence of violations, alleging that the e-commerce platform had engaged in discriminatory actions that potentially inhibited competition and caused harm to consumers.
Should Lazada be found guilty, it could face a substantial fine of up to 50% of its net profits or 10% of its sales generated during the period in which the alleged breaches occurred.
The KPPU’s decision to investigate Shopee and Lazada underscores the increasing scrutiny faced by major e-commerce players in Indonesia, as the country’s digital economy continues its rapid expansion.
With online shopping platforms playing a pivotal role in connecting buyers and sellers across the archipelago, ensuring fair competition and protecting consumer interests has become a top priority for regulators.
