Indonesia is investigating Shopee and Lazada units for alleged competition violations

JAKARTA – 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-competitive laws.

These companies are Shopee Internasional Indonesia and 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, and Lazada, Alibaba’s southeastern arm, did not immediately respond to requests for comment.

The agency said the agency’s hearing into Shopee’s conduct would begin on May 28, 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 percent of net profits or 10 percent of sales made during the period of alleged violations.

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