Indonesian authorities judged that the Chinese video platform “TikTok,” which acquired Tokopedia, the country’s largest e-commerce company, last year, could monopolize the market and demanded various follow-up measures.
According to Reuters on the 28th, Indonesia’s Corporate Competition Supervision Committee (KPPU) said last year that TikTok’s acquisition of Tokopedia poses a risk of monopolizing its market.
KPPU explained during the recent survey that TikTok’s market concentration has risen sharply since its acquisition of Tokopedia, and there is also a possibility of price hikes due to its market dominance.
He also demanded a number of things from TikTok, including securing openness to payment and logistics methods, and prohibiting preferential treatment of its services or unfair pricing.
It also ordered TikTok to submit monthly reports every three months for the next two years and to submit a list of companies dealing with before and after the acquisition and a contract.
The KPPU has the power to determine whether it violates the Competition Act, impose fines, or impose administrative sanctions based on the results of the investigation.
Earlier, TikTok invested a total of $1.5 billion to acquire a 75.01 percent stake in Tokopedia from Indonesia’s largest tech company, GoTo, and then merged TikTok shops and Tokopedia.
Since 2021, TikTok has used its TikTok platform to run a “TikTok Shop” where famous influencers sell goods in Indonesia.
The TikTok shop has grown rapidly with 125 million Indonesian TikTok subscribers on its back.
However, last year, the Indonesian government banned the sale of goods on social media, saying it would protect its e-commerce companies, and TikTok acquired Tokopedia, which had been suffering from financial difficulties, when TikTok shops were blocked from operating.
JENNIFER KIM
US ASIA JOURNAL
