Shopee admits to violating Indonesian monopoly laws
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Indonesia’s antitrust agency on Wednesday said in a statement that e-commerce firm Shopee had admitted to having violated a monopoly rule for its courier service in Indonesia.
The agency also said Shopee has agreed to make adjustments to its operating practices.
Shopee did not immediately respond to a request for comment regarding the agency’s statement.
The agency, known as KPPU, had accused Shopee’s local unit of violating anti-competition rules by directing customers to use certain delivery services, one of which has a Shopee Indonesia executive on its board of directors.
Shopee, the market leader in Indonesia’s fast-growing e-commerce sector, is owned by Southeast Asian technology firm Sea Ltd.
Aside from Shopee, KPPU was also investigating the local unit of another e-commerce platform Lazada, the Southeast Asian arm of Alibaba.
Questions & Answers
Q.What specific anti-competition practice did Shopee admit to regarding its courier service?
What specific anti-competition practice did Shopee admit to regarding its courier service?
Shopee admitted to violating a monopoly rule by directing customers to use specific delivery services. One of these services reportedly has a Shopee Indonesia executive on its board of directors, which raised concerns about anti-competition practices.
Q.What action has Shopee agreed to take in response to the allegations?
What action has Shopee agreed to take in response to the allegations?
Shopee has agreed to make adjustments to its operating practices following the accusations from Indonesia’s antitrust agency. This agreement comes after the e-commerce firm admitted to having violated a monopoly rule.
Q.Is Shopee the only e-commerce platform being investigated by the KPPU?
Is Shopee the only e-commerce platform being investigated by the KPPU?
No, Shopee is not the only e-commerce platform under investigation. The KPPU is also investigating the local unit of Lazada, which is the Southeast Asian arm of Alibaba, in relation to similar anti-competition concerns.
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