Friday, June 14, 2024

Anti-monopoly agency finds indication of law violation by Lazada

Reading Time: < 1 minute
Gusty da Costa

Journalist

Editor

Interview

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

Journalist

 

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

A number of members of the Prabowo Subianto-Gibran Rakabuming Raka election winning team (TKN) have been awarded management supervision posts within Indonesia’s State-owned enterprises (SOEs) in post-2024 presidential election.
State electricity company PT PLN has secured a lending facility from a consortium of the World Bank, Canada Clean Energy & Forest Climate Facility and Clean Technology Fund amounting to US$581.5 million for increased access to electrification in the country, energy transition programs and the company’s digitization.
Dozens of activists of the Mining Advocacy Network (Jatam) and representatives of residents living in eastern Indonesia provinces held a sit-in as the Indonesian Nickel and Cobalt Conference was underway at the Mulia Hotel in Jakarta on Thursday, June 13, 2024.
A legislator with the House of Representatives’ (DPR) Agriculture, Environment and Forestry Commission IV, has called on the Ministry of Environment and Forestry (KLHK) to conduct research on river water in mining areas potentially contaminated by illegal mining activities.
State energy company PT Pertamina recorded positive performance in 2023, booking a total profit of US$ 4.77 billion (Rp 72.7 trillion), an increase by 17 percent from 2022, and its earnings before interest, tax, depreciation and amortization (EBITDA) at US$14.36 billion, a six-percent increase from the 2022 figure.
The Muslim-based National Awakening Party (PKB) has endorsed former Governor Anies Baswedan as its sole candidate for the upcoming Jakarta gubernatorial election in November.