Indonesia is investigating Shopee and Lazada units for alleged competition violations

Indonesia’s antitrust agency said on May 27 that it was investigating the local units of e-commerce platforms Shopee and Lazada for suspected violations of anti-competition laws.

Hanoi (VNA) – Indonesia’s antitrust agency said on May 27 that it was investigating the local units of e-commerce platforms Shopee and Lazada for suspected anti-competitive violations.

The agency said it is closely watching PT Shopee Internasional Indonesia and PT Ecart Webportal Indonesia, the domestic units of Shopee and Lazada.

There are indications that Lazada has engaged in discriminatory conduct that potentially hinders competition and harms customers, the agency’s president, M. Fanshurullah Asa, said in a statement.

He did not disclose details of the indications or specify Shopee’s violations, but called the two companies’ violations “similar.”

If violations are proven, Lazada will face a penalty of up to 50% of its net profit or 10% of the total sales obtained in the relevant market during the period of violation, it continued.

Asa also said the agency is expected to begin a preliminary hearing on Shopee on May 28.

Shopee, owned by Southeast Asian tech company Sea Limited, and Lazada, a subsidiary of China’s Alibaba group, are key players in the e-commerce landscape in the region./.