Indonesia is investigating Shopee and Lazada units for alleged competition violations

UPDATE 1 – Indonesia is investigating Shopee and Lazada units for alleged competition violations

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

These companies are PT Shopee Internasional Indonesia and PT Ecart Webportal Indonesia, which oversee the domestic operations of Shopee and Lazada, respectively.

The agency did not explain what the alleged violations of anti-competitive rules were.

Shopee, owned by Southeast Asian tech company Sea Ltd DREAMand Lazada, Alibaba’s South Asian arm 9988.HKdid not immediately respond to requests for comment.

The agency said the agency’s hearing into Shopee’s conduct would begin Tuesday, without providing details on a potential penalty.

The agency found early evidence of violations by Lazada, which it said could face a maximum fine of 50% of net profits or 10% of sales during the period of alleged violations.

“There are indications that Lazada has taken discriminatory actions that have the potential to inhibit competition, and there are indications that its actions have been harmful to consumers,” the agency said.

Reporting by Stanley Widianto; Additional reporting by Fanny Potkin; Editing: Martin Petty