On June 10, 2025, TikTok Shop, operating under TikTok Nusantara (SG) Pte. Ltd., responded to allegations of monopolistic practices from Indonesia’s Commission for the Supervision of Business Competition (KPPU).

These claims arose following TikTok’s acquisition of a majority stake in Tokopedia.

During a KPPU hearing in Jakarta, TikTok emphasized its commitment to user choice in payment and logistics services, as well as fair business practices on its platform.

Farid Fauzi Nasution, TikTok’s legal representative, said that the company complies with all conditional approvals proposed by KPPU.

These include prohibitions against tying and bundling practices, market power abuse, and limitations on cross-platform promotions.

To clarify the tying and bundling prohibition, TikTok proposed adding the phrase “that forces buyers to use such payment or logistics methods.”

🔗 Source: Katadata

🧠 Food for thought

1️⃣ Indonesia follows global trend of intensified tech merger scrutiny

TikTok’s willingness to accept KPPU’s conditional approval aligns with a broader global pattern where tech companies face heightened regulatory oversight.

Between 2020 and 2023, over 75% of Big Tech M&A deals valued above $1 billion faced antitrust reviews in major markets, demonstrating how common such scrutiny has become 1.

The duration of antitrust investigations has lengthened significantly, from 6 months in 2015 to 14 months in 2023, creating incentives for tech companies to cooperate with regulators rather than engage in prolonged battles 1.

In 2022 alone, the US Federal Trade Commission challenged 67% of proposed Big Tech M&A deals exceeding $500 million, illustrating why TikTok might prefer conditional approval over risking a blocked transaction 1.

KPPU’s focus on preventing tying and bundling practices in the TikTok-Tokopedia case reflects global regulatory concerns about digital platform power, showing Indonesia’s alignment with international regulatory approaches.

2️⃣ E-commerce platforms increasingly adapt to regulatory frameworks

The TikTok-Tokopedia case demonstrates how e-commerce companies must navigate complex regulatory environments while pursuing growth strategies.