Indonesia’s antitrust agency KPPU has granted conditional approval for TikTok’s acquisition of Tokopedia, the country’s largest ecommerce platform.

This decision follows an investigation into potential monopoly risks associated with the US$840 million deal, which was finalized in January 2024.

TikTok acquired a 75.01% stake in Tokopedia from GoTo.

KPPU’s approval is dependent on compliance with specific requirements, including maintaining open payment and logistics methods and avoiding predatory pricing practices.

The agency’s investigation identified concerns about increased market concentration and potential price hikes.

KPPU said it will monitor compliance with these conditions until June 17, 2027.

A spokesperson for TikTok said the company respects the decision and is committed to fair competition principles. Tokopedia has not yet provided a comment on the approval.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Indonesia strengthens regulatory oversight in rapidly evolving digital markets

The conditional approval of the TikTok-Tokopedia deal reflects Indonesia’s increasingly assertive approach to regulating tech companies, consistent with global trends of heightened scrutiny.

The KPPU’s conditions for approval, including guaranteed open methods for payment and logistics, address specific concerns about potential market dominance in Indonesia’s digital economy 1.

This is part of a broader pattern of enforcement, evidenced by Indonesia’s recent $12.4 million fine against Google for alleged unfair business practices related to its app store and payment systems 2.

Indonesia’s competition law provides significant enforcement powers, with potential sanctions including fines of up to 50% of net profits or 10% of turnover for companies found to be engaging in anticompetitive practices 1.

The three-year monitoring period until June 2027 demonstrates how Indonesia is developing longer-term regulatory oversight mechanisms specifically tailored to digital markets.

2️⃣ TikTok’s acquisition signals intensifying competition in Southeast Asia’s e-commerce battleground