Indonesian Political, Business & Finance News

Delivery Workers Protest as TikTok Shop Takes Over Income Sources

| Source: CNBC Translated from Indonesian | Regulation
Delivery Workers Protest as TikTok Shop Takes Over Income Sources
Image: CNBC

Jakarta, CNBC Indonesia - TikTok is accused of monopolising the e-commerce and goods delivery business through TikTok Shop. The Chinese company is said to not provide opportunities for other delivery companies to offer their services on TikTok Shop.

This is one of the bases for the report by the Association of E-Commerce Logistics Entrepreneurs (APLE) to the Business Competition Supervisory Commission (KPPU).

“Consumers who shop through TikTok Shop cannot freely choose the courier service that will deliver their goods. In other words, TikTok has engaged in discriminatory actions against several courier companies, as it only partners with certain courier services,” said Panji Satria Utama, advocate from Satya Law Firm, as legal representative of APLE, to CNBC Indonesia on Tuesday (21/4/2026).

According to him, this action has the potential to create monopolistic practices because TikTok closes off opportunities for other courier services to enter and sell their services on the TikTok platform.

“Of course, this has the potential to create monopolistic practices, as it closes off opportunities for other courier services to enter and sell their services on the TikTok platform,” he explained.

The report to the KPPU contains allegations of vertical integration and predatory pricing carried out by TikTok. In vertical integration, the app has evolved from a social media platform into an online shopping service.

However, under Trade Ministerial Regulation Number 31/2023 Article 21 paragraph (3), there is a prohibition on social media facilitating payments.

In addition, TikTok is suspected of engaging in predatory pricing that can lead to loss-leading. Panji explained that this could harm traders and create unhealthy business practices.

“I take an example: traders A and B are two traders selling goods/products with the same specifications and quality. However, because A sells their goods through TikTok, the selling price of A’s goods automatically becomes cheaper than B’s. As a result, more consumers will shop from A than from B. Over time, B will suffer losses - and may even close their business. Then, after B closes their business, A becomes the single player. After A becomes the single player, it is not impossible for A to raise the selling price of their products far above market prices,” Panji explained.

The report to the KPPU was submitted last week. Panji said his side is awaiting follow-up on the complaint.

“In practice, after the complaint letter is submitted, the KPPU will first examine the completeness of the administration of the complaint letter,” he stated.

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