KPPU Investigates Alleged Monopoly by TikTok Shop, Potentially Impacting SMEs and Consumers
JAKARTA, KOMPAS.com - The Business Competition Supervisory Commission (KPPU) is following up on a report submitted by the E-commerce Logistics Entrepreneurs Association (APLE) regarding alleged monopolistic practices and unfair business competition within the digital trading ecosystem. The report was received on 15 April 2026 and is now entering the initial clarification stage.
Several entities reported include TikTok Pte. Ltd., TikTok Nusantara (SG) Pte. Ltd., and the TikTok Shop service.
Head of Public Relations and Cooperation Bureau at KPPU, Deswin Nur, stated that every incoming report will undergo clarification and initial research stages to assess administrative completeness and the sufficiency of indications of alleged violations of Law No. 5 of 1999.
“If the clarification results show sufficient initial indications, the case will proceed to the initial investigation stage. In this phase, KPPU is authorised to collect evidence, summon relevant parties, and delve into the structure and behaviour of the reported business actors before entering the examination or trial stage,” Deswin said in an official statement on Thursday (23/4/2026).
“The duration of the process greatly depends on the complexity of the case and the availability of evidence,” he added. Nevertheless, all stages adhere to the time limits stipulated in KPPU regulations.
The APLE report was submitted through legal representative Panji Satria Utama from Satya Law Firm. In his statement, Panji noted that the complaint is driven by concerns over the potential disruption to the business competition climate in the digital trading sector.
According to Panji, TikTok is alleged to operate a business model with vertical integration encompassing content distribution, recommendation algorithms, e-commerce platforms, payment systems, and logistics services. This structure is seen as potentially creating comprehensive control over the digital trading value chain.
“The integration model opens up potential anti-competitive practices such as predatory pricing, discrimination against logistics service providers, and restrictions on market access for competitors,” he said.
Panji highlighted that the algorithm aspect is also under scrutiny. The recommendation system is deemed capable of prioritising products within the internal ecosystem over those on competing platforms, thereby limiting visibility for other business actors.
From the logistics perspective, the complainant revealed indications of transaction diversions to specific service providers integrated into the platform. In some cases, consumers are said to lack the freedom to choose delivery services.