E-commerce firm Shopee admitted to violating competition law, agreed to adjust its practices, Indonesia says

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Indonesia Competition Commission said Shopee proposed adjustments to its current practices and that the request has been approved.

"Shopee is always committed to complying with all applicable regulations and laws in the Republic of Indonesia in conducting our business operations," said Radynal Nataprawira, head of public affairs at Shopee Indonesia.

Last month, KPPU revealed its preliminary investigation found that Shopee allegedly prioritized Shopee Express in every package delivery to consumers."Shopee and Shopee Express admitted that they had violated Law no.

KPPU said Shopee proposed adjustments to its current practices on June 20 which were approved by the commission council. "Shopee Indonesia attended a meeting with KPPU on 25 June to discuss points of the integrity pact that was 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, in accordance with the feedback provided and approved by the KPPU," Radynal Nataprawira, head of public affairs at Shopee Indonesia, told CNBC in emailed comments.

KPPU investigators also named an employee who held director positions in both Shopee Indonesia and Shopee Express, saying this"dual position" has the ability to influence competition and control the behavior of both companies.

 

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