Blog > Marketplace News > Confirm! Indonesia is Investigating Shopee for Alleged Monopolistic Practices
Confirm! Indonesia is Investigating Shopee for Alleged Monopolistic Practices
Jayson 21 Feb 2024 10:24
It is reported that the Indonesian Competition Commission (KPPU) spokesperson Deswin Nur told Tech in Asia that the commission is investigating allegations of monopolistic behavior by Shopee.
The incident comes after reports emerged that Shopee automatically directed users to affiliated couriers for delivery, specifically its in-house logistics service Shopee Xpress.
"This move prevents consumers from choosing express delivery services from other companies at the price they want," Nur explained. He added that this practice resulted in a "significant increase in shipping volumes" for these affiliated couriers, especially Shopee Xpress.
The case is currently under investigation and awaiting trial.
If Shopee is found guilty of violating the rules, the spokesperson said the company would face a minimum fine of 1 billion rupees (about $64,000) and a maximum fine of 50% of net profits or 10% of total sales during the period of violation.
The incident comes after reports emerged that Shopee automatically directed users to affiliated couriers for delivery, specifically its in-house logistics service Shopee Xpress.
"This move prevents consumers from choosing express delivery services from other companies at the price they want," Nur explained. He added that this practice resulted in a "significant increase in shipping volumes" for these affiliated couriers, especially Shopee Xpress.
The case is currently under investigation and awaiting trial.
If Shopee is found guilty of violating the rules, the spokesperson said the company would face a minimum fine of 1 billion rupees (about $64,000) and a maximum fine of 50% of net profits or 10% of total sales during the period of violation.
