Indonesia: Opened KPPU investigation into e-commerce platform into Lazada over alleged anti-competitive practices

On 27 May 2024, the Indonesian Competition Authority (KPPU) announced the commencement of an investigation into Lazada over the alleged violation of the Anti-Competition Law No. 5 of 1999. The investigation aligns with KPPU's commitment to prioritising oversight of the digital market during the 2024 – 2029 period. The investigation was opened based on preliminary evidence gathered since 2021, suggesting discriminatory practices by Lazada that could potentially negatively affect competition and harm consumers. The KPPU stated that it will continue collecting additional evidence to determine whether the investigation meets the criteria to proceed to the filing and trial stages. If found guilty, Lazada could face sanctions of up to 50 % of net profits or 10 % of total sales from the relevant market during the period of violation based on Anti-Competition Law No. 5/1999.