Sea subsides after Indonesian unit accepts report of alleged antitrust violations

Sea (NYSE:SE) shares fell by about 3% The company began pre-market operations on Tuesday after its e-commerce arm, PT Shopee International Indonesia, received a report of alleged antitrust violations from Indonesian regulatory agency KPPU, Bloomberg News reported.

According to the company’s lawyer, the disclosure occurred in in Jakarta on Tuesday, the report added.

The company has signed an agreement with the antitrust authority to modernise its delivery services.

Shopee noted that the signing of the agreement is in line with its efforts to comply with government regulations, the report quoted Executive Director Handhika Jahja as saying.

The company also pledged not to engage in anti-competitive behavior and to give up its dominant position. The regulator will create a team to oversee the company’s implementation of the changes for 90 days.

As noted in the report, under current regulations, Shopee will face another crackdown and potential fines if it fails to implement the proposed changes.

In May, news emerged that the agency was investigating Sea, which operates e-commerce platform Shopee, over allegations it unfairly favored its own delivery service over other options.

Indonesia is a growth market for the Singapore-based company, alongside rivals such as ByteDance’s (BDNCE) TikTok and Alibaba’s (BABA) Lazada.