Indonesia: Signed Shopee and Shopee Express behavioural change integrity pact following KPPU investigation into abuse of market power

Description

Signed Shopee and Shopee Express behavioural change integrity pact following KPPU investigation into abuse of market power

On 2 July 2024, Shopee and Nusantara Ekspres Kilat (Shopee Express) signed a behavioural change integrity pact, initiating a 90-day oversight period by the Indonesian Competition Commission (ICC). The integrity pact stipulates that Shopee acknowledges and accepts the alleged violation report presented by the ICC. During the signing, Shopee also committed to being active and cooperative in the verification and validation of evidence by the Behavioural Change Implementation Oversight Team throughout the oversight period. Previously, Shopee admitted to violating Law No. 5 of 1999, specifically Article 19(d) and Article 25(1)(a), concerning courier service delivery on the Shopee platform. Shopee acknowledged engaging in monopolistic practices and unfair business competition by discriminating against certain business actors. Additionally, Shopee admitted to using its dominant position to determine trading conditions with the aim of preventing or impeding consumers from obtaining competitive goods and services, both in terms of price and quality.

Original source

Scope

Policy Area
Competition
Policy Instrument
Unilateral conduct regulation
Regulated Economic Activity
platform intermediary: e-commerce
Implementation Level
national
Government Branch
executive
Government Body
competition authority

Complete timeline of this policy change

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2024-05-28
under deliberation

On 28 May 2024, the Indonesian Competition Commission (KPPU) announced its investigation (04/KPPU-I…

2024-06-26
under deliberation

On 26 June 2024, the e-commerce platform Shopee and Nusantara Ekspres Kilat (Shopee Express) admitt…

2024-07-02
concluded

On 2 July 2024, Shopee and Nusantara Ekspres Kilat (Shopee Express) signed a behavioural change int…