KPPU investigates alleged monopoly in TikTok Shop ecosystem
Jakarta (ANTARA) - The Indonesian Competition Commission (KPPU) is investigating allegations of monopolistic practices and unfair business competition within the digital trading ecosystem involving the technology giant platform TikTok Shop.
The allegations of monopoly and unfair business competition were reported to the KPPU by the E-commerce Logistics Entrepreneurs Association (APLE).
“The report was received on Wednesday (15/4) and has undergone initial clarification and preliminary research stages,” said the Head of Public Relations and Cooperation Bureau of the KPPU, Deswin Nur, in Jakarta on Tuesday.
Subsequently, an investigation will be conducted to gather evidence in the form of statements, letters, documents, and expert reports.
APLE reported TikTok Pte. Ltd.; TikTok Nusantara (SG) Pte. Ltd.; and the TikTok Shop service integrated with Tokopedia regarding alleged monopolistic practices in the TikTok ecosystem.
He stated that at this stage, the KPPU will summon several related parties and delve into the structure and behaviour of the reported business actors.
According to him, this investigation phase will serve as the basis before the case can proceed to examination or trial processes.
Deswin added that the duration of case handling cannot be determined precisely as it depends on the complexity of the case.
He assured that the entire investigation process will continue to refer to Law No. 5 of 1999.
In accordance with the provisions.
He said that if violations are proven, the KPPU is authorised to impose administrative sanctions in the form of fines, orders to cease practices, cancellation of agreements, and obligations to change business structures or practices.
Meanwhile, the General Chairman of APLE, Sonny Harsono, stated that his side hopes the KPPU can promptly follow up on the report to create a healthier digital economic ecosystem.
“We hope the digital economy is not monopolised and there is better competition, so that economic growth also increases,” he said.
APLE estimates that the potential losses due to reduced competition in the digital ecosystem could reach 10-15% of the total value of Indonesia’s current digital economy, estimated at $100 billion or equivalent to Rp1,750 trillion.
“That value is considered to reflect the loss of market efficiency due to practices that hinder competition,” he said.