Friday, June 14, 2024

Anti-monopoly agency finds indication of law violation by Lazada

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Gusty da Costa




Jakarta, May 27, 2024 − The Business Competition Supervisory Commission (KPPU) has found indications of violation of Law No. 5/1999 on prohibition of monopolistic practices by Lazada Indonesia (PT Ecart Webportal Indonesia).

Upon monitoring since 2021, Lazada is indicated to have taken discriminatory actions that have the potential to hamper business competition and harm customers or consumers. The commission will now conduct the investigation in order to obtain substantial evidence to prove the allegations.

If found to have committed violation against principles of lawful business practices, Lazada may be subject to sanctions under Law No. 5/1999.

“If later proven to be violating the law, Lazada could be fined with a maximum penalty of 50 percent of its net profit or 10 percent of its total sales, which it obtained in the relevant market during the period of violation,” KPPU chairman, M. Fanshurullah Asa, said in a media statement on Monday, May 27, 2024.

Lazada has not responded to Indonesia Business Post’s request for comments by the time of the publication of this article.

The monitoring and investigation on Lazada’s business activities is part of the KPPU’s serial monitoring activities on the behaviour of a number of business actors in the digital market, including PT Shopee Internasional Indonesia (Shopee) and Google.

“For the alleged violations committed by Shoppe, the process will now enter the stage of First Preliminary Examination of the Panel Session, that will be held tomorrow, May 28, 2024,” the KPPU chairman said.

Gusty da Costa






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