Shopee and its courier service, Shopee Express, have agreed to modify their current procedures following their admission of violating an Indonesian competition law, the watchdog of the nation said on Wednesday.
TakeAway Points:
- Shopee and its courier service, Shopee Express, agreed to adjust their current practices after admitting to breaching a competition rule in Indonesia, the country’s watchdog said on Wednesday.
- “Shopee is always committed to complying with all applicable regulations and laws in the Republic of Indonesia in conducting our business operations,” said Radynal Nataprawira, head of public affairs at Shopee Indonesia.
- Last month, KPPU revealed that its preliminary investigation found that Shopee allegedly prioritised Shopee Express in every package delivery to consumers.
Shopee to adjusct its Practices
Following their admission of breaking an Indonesian competition law, Shopee and its courier service, ShopeeExpress, decided to modify their current procedures. Shopee is the e-commerce arm of Southeast Asian tech giant Sea Limited.
“Shopee and Shopee Express admitted that they had violated Law No. 5 of 1999, regarding delivery (courier) services on the Shopee platform, by agreeing to various behavioural change points determined by the KPPU Council in the hearing yesterday,” Indonesia Competition Commission Komisi Pengawas Persaingan Usaha said in a Google-translated statement.
KPPU said Shopee proposed adjustments to its current practices on June 20, which were approved by the commission council.
“Shopee Indonesia attended a meeting with KPPU on June 25 to discuss points of the integrity pact that was shared by KPPU last week. On June 20, Shopee proposed changes to our user interface to enhance our services and demonstrate our compliance in providing the best services to our users, in accordance with the feedback provided and approved by the KPPU,” Radynal Nataprawira, head of public affairs at Shopee Indonesia, wrote in an emailed comments.
“Shopee is always committed to complying with all applicable regulations and laws in the Republic of Indonesia in conducting our business operations,” said Nataprawira.
Investigations on Shopee
Last month, KPPU revealed that its preliminary investigation found that Shopee allegedly prioritised Shopee Express in every package delivery to consumers
The watchdog also accused Shopee of “discriminatory behaviour,” saying Shopee Express and another delivery service, J&T Express, were “automatically activated en masse on the seller dashboard,” while other companies that also have good service performance did not get selected automatically.
KPPU investigators also named an employee who held director positions in both Shopee Indonesia and Shopee Express, saying this “dual position” has the ability to influence competition and control the behaviour of both companies.
KPPU is also probing Shopee rival Lazada, the Southeast Asian e-commerce arm of Chinese tech giant Alibaba, saying it has found indications of similar violations.
“If it is later proven to have violated, Lazada can be subject to a fine of a maximum of 50% of the net profit or 10% of the total sales it earned in the relevant market during the period of the violation,” KPPU said in a statement last month.
About Shopee
Shopee Pte. Ltd., commonly known by its trade name Shopee, is a worldwide technology firm based in Singapore that specialises in e-commerce. It is one of Sea Limited’s subsidiaries. It was first introduced in Singapore in 2015 before going worldwide.
With 343 million monthly visitors, Shopee is regarded as the biggest e-commerce platform in Southeast Asia as of 2021. Additionally, it assists buyers and sellers who want to buy and sell things online in Latin American and East Asian nations.
