Indonesia probes Shopee over alleged monopolistic practices

Shopee Xpress courier delivering goods / Photo credit: Shopee

The Indonesian Competition Commission (KPPU) is investigating allegations of monopolistic practices by Shopee, the antitrust body’s spokesperson Deswin Nur told Tech in Asia.

The development arose following Shopee’s alleged decision to automatically direct users to affiliated shipping companies for deliveries, particularly its in-house logistics service, Shopee Xpress.

“This move prevents consumers from choosing courier services from other companies at desired prices,” explained Nur. He added that such practices have led to a “significant increase in shipping volume” for these affiliates, especially Shopee Xpress.

The case is currently under investigation and awaiting trial.

If Shopee is found guilty, the company faces a minimum fine of 1 billion rupiah (around US$64,000), and a maximum of 50% of the net profits or 10% of total sales earned during the period of the violation, according to the spokesperson.

Tech in Asia has reached out to Shopee Indonesia for comments.

Shopee Xpress was first introduced in 2020. According to a previous analysis by Tech in Asia, Shopee has doubled down on investments in property and equipment to expand its logistics facilities since then.

As of February 2023, Shopee Xpress had more than 300 hubs across Southeast Asia. Besides Shopee, Lazada has its own logistics arm called Lazada Logistics, while Tokopedia has GoTo Logistics.

See also: What Shopee’s breakup with Ninja Van, QuadX in the Philippines means for 3PL firms

​​Currency converted from Indonesian rupiah to US dollar: US$1 = 15,638 rupiah.