Indonesia is investigating Shopee and Lazada for suspected competition violations

Indonesia’s antitrust agency said on Monday it was investigating the local units of e-commerce giants Shopee and Lazada for potential violations of anti-competitive rules.

The agency said it is closely watching PT Shopee Internasional Indonesia and PT Ecart Webportal Indonesia, the domestic units of Shopee and Lazada.

Shopee, owned by Southeast…

Indonesia’s antitrust agency said on Monday it was investigating the local units of e-commerce giants Shopee and Lazada for potential violations of anti-competitive rules.

The agency said it is closely watching PT Shopee Internasional Indonesia and PT Ecart Webportal Indonesia, the domestic units of Shopee and Lazada.

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.

“There are indications that Lazada has engaged in discriminatory conduct that potentially hinders competition and harms customers,” the agency’s president, M. Fanshurullah Asa, said in a statement.

He did not disclose details of the indications or specify Shopee’s violations, but called the two companies’ violations “similar.”

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“If violations are proven, Lazada will face a penalty of up to 50 percent of net profit or 10 percent of total sales earned in the relevant market during the period of violation,” it added.

The agency will begin a preliminary hearing in the Shopee case on Tuesday, he said.

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