The antitrust agency says the Shopee division admits to violations

The Indonesian arm of e-commerce company Shopee has admitted violating antitrust laws and agreed to change some of its activities, the Indonesian Antitrust Agency (KPPU) said on Wednesday.

In May, the KPPU said it was monitoring the Indonesian units of e-commerce giants Shopee and Lazada over allegations of anti-competitive behavior.

PT Shopee International Indonesia and logistics company PT Nusantara Ekspres Kilat pleaded guilty to violating Indonesia’s antitrust and anticompetition laws, KPPU said in a statement.

“The award will be included in a behavioral change integrity pact which will be signed by both affected parties at the next hearing,” it said.

The next hearing was scheduled for July 2.

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

Shopee Indonesia’s head of public affairs, Radynal Nataprawira, said that during a hearing at the KPPU last week, the company proposed changing the user interface to suit local regulations.

“Shopee always strives to comply with all applicable laws and regulations in the Republic of Indonesia when conducting its business activities,” Radynal said in a statement.

In late May, the KPPU accused Shopee’s Indonesian operation of anti-competitive behavior by favoring certain delivery companies, including PT Nusantara Ekspres Kilat.

KPPU is also investigating Lazada’s PT Ecart online portal in Indonesia.

Agence France-Presse