Tuesday, July 16, 2024

Shopee and Shopee Express sign ‘Behavioural Change Integrity Pact’

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Gusty da Costa




PT Shopee International Indonesia (Shopee) and PT Nusantara Ekspres Kilat (Shopee Express) signed an Integrity Pact concerning alleged violation of Article 19 letter d and Article 25 paragraph (1) letter a of Law No. 5/1999 Related to Delivery Services (Courier) on the Shopee Platform in the Assembly Session of the Business Competition Supervisory Commission (KPPU) on Tuesday, July 2, 2024.

“The hearing was chaired by Aru Armando as Chairman of the Panel, accompanied by Gopprera Panggabean and Budi Joyo Santoso as Panel Members. Meanwhile, the Respondents, PT Shopee International Indonesia (Respondent I) and PT Nusantara Ekspres Kilat (Respondent II), were present accompanied by their legal counsels,” KPPU said in a statement on Wednesday, July 3, 2024.

With the signing of the Integrity Pact, the supervision of behavior change will begin to be implemented by KPPU on the two reported parties for a maximum of 90 days ahead. In the previous hearing, Shopee and Shopee Express submitted responses to the Integrity Pact Points submitted in writing.

The Integrity Pact in principle stipulates that the Shopee and Shopee Express acknowledge and accept the Alleged Violation Report read out by the Investigator of KPPU. In signing the Integrity Pact, the Reporting Persons also expressed their willingness to be active and cooperative in every process of verification and/or validation of evidence conducted by the Behavior Change Implementation Supervision Team during the Behavior Change Supervision period.

The Commission Panel also welcomes Shopee’s commitment to make interface adjustments in order to prioritise the best service for Shopee Platform users.
Furthermore, the Change of Conduct Supervision is carried out for a maximum period of 90 working days from July 3, 2024 to November 6, 2024. The Supervisory Team appointed by the Commission Panel will request documents in accordance with the terms and obligations in the Pact.

If within that period Shopee and Shopee Express are proven to have made changes in behavior, the Commission Panel will issue a Stipulation of Case Termination.
However, if it is not proven that they have implemented behavior change, KPPU will continue this case to the Continuing Examination stage, which may lead to the issuance of a KPPU decision and the imposition of sanctions on the Shopee and Shopee Express.

It was alleged that Shopee and Shopee Express have violated article 19 letter (d) and article 25 of Law No. 5/1999 on Business Competition Supervisory Commission. Article 19 letter (d) of the Law stipulates that business actors are prohibited from conducting one or several activities, either alone or in conjunction with other business actors, which may result in the occurrence of monopolistic practices and or unfair business competition in the form of discriminatory practices against certain business actors.

Meanhile article 25 paragraph 1 letter (a) of the Law stipulates that business actors are prohibited from using a dominant position either directly or indirectly to set trade conditions with the aim of preventing and or obstructing consumers from obtaining goods and or services that compete, both in terms of price and quality.

Gusty da Costa






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