BRAZIL – 2022/03/22: In this photo illustration, a silhouette of a woman is holding a smartphone with the Shopee logo in the background. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)
Rafael Henrique Sopa Picture | Lightrocket | Getty Images
Shopee and courier service Shopee Express agreed to adjust their current practices after admitting to violating competition rules in Indonesia, the country’s watchdog said on Wednesday.
Shopee is the e-commerce branch of Southeast Asia’s tech giant Sea Limited.
“Shopee and Shopee Express admit that they have violated Law No. 5 of 1999 on shipping (courier) services on the Shopee platform by agreeing to various points of behavioral change determined by the KPPU Board in yesterday’s hearing,” the Indonesian Competition Commission Supervisory Commission. Business Competition said in a Google-translated statement.
KPPU said Shopee proposed an adjustment to its current practice on June 20 which was approved by the commission board.
“Shopee Indonesia attended a meeting with the KPPU on June 25 to discuss the points of the integrity pact implemented by the KPPU last week. On June 20, Shopee proposed changes to the user interface to improve services and show our compliance in providing services that best. for users, in accordance with the feedback provided and approved by KPPU,” Radynal Nataprawira, head of public affairs at Shopee Indonesia, told CNBC in an emailed comment.
“Shopee is always committed to complying with all applicable rules and laws in the Republic of Indonesia in conducting business operations,” said Nataprawira.
Last month, KPPU announced a preliminary investigation found that Shopee allegedly prioritized Shopee Express in every package delivery to consumers.
The watchdog also accused Shopee of “discriminatory behavior,” saying Shopee Express and other J&T Express delivery services were “automatically activated en masse on the seller’s dashboard” while other companies that also had good service performance were not automatically selected.
KPPU investigators also cited employees who hold directorships in Shopee Indonesia and Shopee Express, saying this “dual position” has the ability to influence competition and control the behavior of both companies.
KPPU is also eyeing Shopee’s rival Lazada, the Southeast Asian e-commerce arm of the Chinese tech giant. Alibabasaid to have found indications of the same violation.
“If later found to be in violation, Lazada can be fined a maximum of 50% of the net profit or 10% of the total sales obtained in the related market during the period of the violation,” said KPPU. in a statement last month.
