The Indonesian Ministry of Communication and Informatics is working on anti-monopoly regulations for digital ecosystems, including prepares measures for large startups. The ministry is studying the European Union’s Digital Market Act (DMA) and Digital Service Act (DSA) as part of this initiative.
Director General of Information Application at the Ministry of Communication and Informatics, Semuel Abrijani Pangerapan, said Indonesia is likely to adopt these regulations in the form of a Government Regulation (PP), which is expected to be finalized in the third or fourth quarter of the year.
The DMA addresses core technology platforms such as search engines, e-commerce, and messaging applications, complementing the EU’s competition regulations. It came into effect in May 2023, focusing on prohibiting and obligating technology companies to ensure fair business competition.
On the other hand, the DSA is associated with intermediary services provided by technology companies. Some key aspects covered by the DSA include:
- Establishing specific obligations for digital markets to combat the sale of illegal products and services.
- Introducing measures to combat illegal online content and obligating platforms to react promptly while respecting fundamental rights.
- Protecting minors online by prohibiting platforms from using targeted advertising based on the personal data of minors.
- Imposing certain limitations on ad presentation and the use of sensitive personal data for targeted advertising.
- Prohibiting misleading interfaces or APIs known as ‘dark patterns’ and deceptive practices.
The DSA is set to take effect in August 2023, and companies violating its provisions may face fines of 10 percent of their global annual turnover, which will be escalated to 20 percent for repeated violations.
Semuel said that the ministry is studying the PP, which refers to the DMA and DSA in the EU, and it will be a supporting regulation for the Information and Electronic Transactions Law (UU ITE). This PP on the creation of a healthy digital ecosystem is one of three derivative regulations prepared by the ministry to support the UU ITE, alongside regulations on electronic system management and child protection in the digital space.
The PP will build on the principles outlined in Article 40A of the UU ITE’s second amendment, focusing on creating a level playing field for Electronic System Providers (PSE) to ensure equal opportunities for business and innovation.
To craft this PP, the ministry is examining similar regulations from other countries. In essence, the anti-monopoly regulations will cover not only business practices but also the application of technology within the digital landscape.
