Shopee faces antitrust scrutiny over its delivery services practices in Indonesia

The Indonesian antitrust agency, Komisi Pengawas Persaingan Usaha (KPPU), found that Shopee violated the country’s courier monopoly rules. Shopee, a major player in the Indonesian e-commerce market, operates through two local subsidiaries: PT Shopee International Indonesia and PT Nusantara Ekspres Kilat.

The KPPU investigation revealed that a local Shopee subsidiary violated anti-competitive laws by pressuring customers to use specific delivery companies. Notably, one of those companies had a Shopee Indonesia official on its board, raising concerns about unfair market practices and conflicts of interest.

Read more: Indonesian Competition Commission investigates Shopee over alleged monopolistic practices

In response to these findings, Shopee has committed to changing its business practices. On June 20, the company submitted a proposal to KPPU detailing the planned changes in behavior. The antitrust agency accepted the report and is currently in talks with Shopee to ensure the company complies with the lawful conditions for doing business in Indonesia.

This move by KPPU highlights the agency’s ongoing efforts to maintain fair competition in the e-commerce sector. Shopee’s scrutiny follows a recent investigation into similar antitrust violations by rival Lazada, which also operates extensively in Indonesia.

Source: Marketech