Indonesia’s antitrust agency, the Komisi Pengawas Persaingan Usaha (KPPU), revealed that Shopee and its courier service, Shopee Express, will modify their courier service practices following an admission of violating Indonesian competition laws. The announcement, made on Wednesday, highlighted that Shopee’s prioritization of its internal courier service and the exclusion of other delivery providers created an anti-competitive environment. The KPPU’s findings underscored how these practices limited consumer choices to Shopee Express and another provider that had a Shopee Indonesia executive on its board.
Specifically, the KPPU stated that Shopee breached Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition. This includes violations under Article 19(d), which prohibits discriminatory business practices that may cause monopolistic practices or unfair competition, and Article 25(1), which restricts businesses from using a dominant position to impede market competition or hinder other potential business actors from entering the market.
In a statement issued by the KPPU, it was indicated that Shopee and Shopee Express admitted their violations and have agreed to implement several behavioral changes mandated by the KPPU Council. Radynal Nataprawira, head of public affairs at Shopee Indonesia, commented via email that the adjustments were part of Shopee’s commitment to legal compliance and enhancing service quality in line with the feedback provided by the KPPU.
Shopee, being the largest e-commerce platform in Southeast Asia, with 343 million monthly visitors and a significant user base in Indonesia, underscores the importance of this development. The next KPPU hearing on the case is scheduled for July 2. Readers interested in additional details can access the full report here.