Tag: KPPU

Indonesia – The Indonesian antitrust watchdog KPPU has conditionally approved TikTok’s acquisition of e-commerce giant Tokopedia, concluding its investigation into potential monopoly risks tied to the high-profile merger.

The approval, as reported by Reuters, comes with a set of requirements that TikTok and Tokopedia have agreed to fulfil. The deal, completed last year, had drawn regulatory scrutiny over concerns it could lead to increased market dominance.

Weeks earlier, KPPU flagged a rise in market concentration post-merger and warned of risks such as higher consumer prices and reduced competition. In response, the agency imposed several conditions, including maintaining open access for payment and logistics services and avoiding anti-competitive practices such as self-preferencing and predatory pricing.

A TikTok spokesperson said the company respects and appreciates the agency’s decision.
“Fair competition principles have been part of our approach from the start, and we remain committed to implementing them consistently to support a fair and inclusive digital ecosystem,” the spokesperson said, as quoted by Reuters.

KPPU will continue monitoring the implementation of the conditions until June 17, 2027. The regulator holds authority to investigate competition law violations and impose fines or administrative sanctions as warranted.

Indonesia – Indonesia’s Competition Supervisory Commission (KPPU) has fined Singapore-based Trusty Cars Ltd 1.5 billion rupiah (US$91,883) for missing the deadline to report its acquisition of a stake in PT Mitra Pinasthika Mustika Rent (MPMRent).

Doing business as Carro in Southeast Asia, the company invested US$53.8m in June 2022 to acquire a 50% stake in MPMRent, aiming to provide MPMX with a complete ecosystem, including an online marketplace, financing, rentals, repairs, and aftersales services in Indonesia.

According to a LinkedIn post by Deswin Nur, KPPU’s head of bureau for public relations and cooperation, Carro was required to notify KPPU within 30 days of the transaction becoming legally effective, with a deadline of July 12, 2022. However, Carro submitted its notification on July 28, 2022, twelve working days past the deadline. 

The penalty was imposed after KPPU considered mitigating factors, including Carro’s acknowledgement of the violation and its request for reduced administrative sanctions.

Additionally, Carro cooperated throughout the trial and has no prior violations. The acquisition was also deemed free of monopolistic or unfair competition risks.