KPPU Partners with Japanese Authority to Counter Dominance of Global Digital Giants

The Commission for the Supervision of Business Competition (KPPU) is collaborating with Japan’s Fair Trade Commission (JFTC) to strengthen oversight of the dominance of major business actors in the global digital economy era.

The cooperation was discussed during a bilateral meeting when JFTC Chairman Chatani Eiji visited the KPPU office in Jakarta on Wednesday (29/4/2026).

The meeting was led by KPPU Chairman M Fanshurullah Asa along with KPPU Member Gopprera Panggabean, and attended by KPPU Members Rhido Jusmadi, Hilman Pujana, and Eugenia Mardanugraha.

In the meeting, KPPU assessed that competition authorities are currently facing a new phase. Previously focused on cartel enforcement and tender collusion, supervisory bodies are now required to maintain an open, innovative, and inclusive market structure, particularly in the digital sector.

“KPPU not only handles cartels and tender collusion but also shapes the market structure to remain open, innovative, and inclusive, especially in the digital sector,” stated Fanshurullah Asa in a press release received by Kompas.com on Friday (1/5/2026).

One of the main agendas is the amendment to Law No. 5 of 1999 to expand KPPU’s authority, including the implementation of pre-merger transaction notifications and leniency programmes. JFTC expressed support for these reform efforts.

In the discussion, KPPU also highlighted the increasing market concentration in data-based digital platforms. Several strategic cases have been handled, including in the e-commerce logistics sector, application payment systems, and online lending.

Vertical integration practices by digital platforms are seen as potentially increasing efficiency but also risking market access closure for other business actors if not properly supervised.

KPPU Member Gopprera Panggabean said that KPPU is also examining allegations of monopolistic practices in the e-commerce ecosystem, including social commerce business models.

“Facing these challenges, KPPU affirms the direction of transformation towards a data-driven competition authority,” said Gopprera.

Meanwhile, JFTC introduced the practice of using Digital Analysts, namely external technology experts who support law enforcement and market studies flexibly.

This model is considered a reference for KPPU while still considering information security and institutional independence.