Indonesia probes Lazada, Shopee for possible anti-competition practices

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The Indonesian Competition Commission (KPPU) is looking into Shopee’s and Lazada’s local entities for potential monopolistic acts.

In a statement, the agency said it found Shopee’s algorithm to prioritize Shopee Express, its in-house logistics service. Both Shopee Express and J&T Express – a longtime Shopee logistics partner – have also been prominently placed on the ecommerce platform’s seller dashboard.

The KPPU also pointed out that Handhika Wiguna Jahja, a director at Shopee Indonesia, had also become director of Shopee Express as well in June 2018. The agency said Jahja’s dual position may give him influence to control both companies’ policies.

As for Lazada, the agency alleged that the company had carried out potentially “discriminatory” actions that prevented competition and may have been detrimental to consumers. The KPPU did not go into detail about the potential violations, but said it has been closely following Lazada since 2021.

The preliminary check into allegations against Shopee kicked off on May 28, 2024. A spokesperson for Shopee Indonesia said that the company is “committed to complying with all applicable regulations and legislation in the Republic of Indonesia.”

Tech in Asia has also reached out to Lazada for comment.

Indonesia has tightened its oversight on foreign-owned tech companies lately. In March, the government threatened to block online travel agents like Booking.com, Klook, and Expedia if they did not register with the Ministry of Communication and Information.

See also: Lazada SG’s retrenched, non-union employees to receive $888 for training support