BRAZIL – 03/22/2022: This photo illustration shows the silhouette of a woman holding a smartphone with the Shopee logo in the background. (Photo illustration: Rafael Henrique/SOPA Images/LightRocket via Getty Images)
Rafael Henrique | Sopa Images | Lightrocket | Getty Images
“Shopee and Shopee Express have admitted that they have violated Law No. 5 of 1999 on Delivery (Home Delivery) Services on the Shopee Platform by agreeing to various behavioral changes decided by the KPPU Council at yesterday's hearing,” Indonesian Competition Commission Komisi Pengawas Persaingan Usaha said in a statement translated by Google.
The KPPU said Shopee proposed adjustments to its current practices on June 20, which were approved by the Commission Council.
“Shoppee Indonesia attended a meeting with KPPU on June 25 to discuss the key points of the Good Faith Agreement shared by KPPU last week. On June 20, Shoppee proposed changes to the user interface in accordance with the feedback provided and approved by KPPU to improve services and demonstrate our compliance in providing the best possible service to our users,” Shoppee Indonesia public relations head Radinar Nataprawira told CNBC in an emailed statement.
“Shopee is always committed to complying with all applicable regulations and laws of the Republic of Indonesia in its business operations,” Nataprawira said.
Last month, the KPPU revealed that a preliminary investigation had found that Shopee had given priority to Shopee Express for the delivery of all parcels to consumers.
The watchdog also accused Shopee of “discriminatory practices” after it said Shopee Express and another delivery service, J&T Express, were “automatically bulk-enabled in the seller dashboard,” while other companies with similarly good service records were not automatically selected.
KPPU investigators also named employees who served as directors of both Shopee Indonesia and Shopee Express, saying their “dual positions” gave them the power to influence the competition and control the actions of the two companies.
The KPPU is also investigating Lazada, the Southeast Asian e-commerce unit of Chinese tech giant Alibaba and a Shopee rival, saying it found similar signs of violations.
“If a violation is later proven, Lazada may be fined up to 50 percent of its net profits or 10 percent of its total turnover in the relevant market during the period of violation,” the KPPU said in a statement last month.
