The Indonesian anti-trust agency KPPU said that Shopee Indonesia (PT Shopee International Indonesia) and its affiliated last-mile delivery unit, Shopee Express (PT Nusantara Ekspress Kilat), have admitted to violating monopoly regulations for the courier service.
This admission came during a session held by the KPPU Council on Tuesday attended by representatives and legal representatives of Shopee Indonesia, according to the agency’s statement.
Shopee has agreed to implement several changes as determined by the KPPU Council. These changes will be formalised in the Behavior Change Integrity Pact, which both companies will sign at the next hearing.
The proposal was initially submitted by Shopee on June 20, 2024, and subsequently approved by the Commission Council.
The Council outlined the conditions and obligations for each reported party to change their behaviour, as stated in the pact. The Pact confirmed that each reported party received and acknowledged the alleged violation report and requested the opportunity to change their practices.
The commission council will continue the next session with the signing of the Integrity Pact on July 2, 2024.
Responding to DealStreetAsia’s inquiries, Shopee Indonesia confirmed that the company’s representatives attended a meeting with KPPU on June 25 to discuss points of the integrity pact shared by KPPU last week.
“On 20 June, Shopee proposed changes to our user interface to enhance our services and demonstrate our compliance in providing the best services to our users, following the feedback provided and approved by the KPPU,” said Radynal Nataprawira, Head of Public Affairs Shopee Indonesia.
He added that Shopee appreciates the ongoing support provided by KPPU, and is committed to continue providing a variety of high-quality logistics solutions and choices for users.“Shopee is always committed to complying with all applicable regulations and laws in the Republic of Indonesia in conducting our business operations,” said Nataprawira.
A report alleging anti-competition rule violations by Shopee first surfaced in February. The firm is suspected of directing users to Shopee Xpress, its affiliated logistics provider.
The KPPU held an initial hearing with Shopee on May 28, addressing allegations that Shopee’s algorithm was set up to prioritise Shopee Express for package deliveries. Additionally, the KPPU found that Shopee engaged in alleged discriminatory practices by automatically activating Shopee Express and logistics company J&T on the sellers’ dashboard, despite having partnerships with other delivery service providers.
Deswin Nur, head of the bureau for public relations and cooperation at KPPU told DealStreetAsia that his party will continue to monitor developments in the case, including the implementation of changes in the e-commerce platform. “If it is later found that the reported party [Shopee] committed another violation, it will be deemed a breach of the integrity pact, and the trial will continue until sanctions are imposed,” Nur said.