- E-commerce giant Shopee faces an Indonesian antitrust probe.
- If guilty, Shopee could face hefty fines and reshape the country’s e-commerce landscape.
- All eyes on response and if competitors face similar scrutiny.
Shopee investigated over Shopee Xpress
Indonesian e-commerce giant Shopee is facing an investigation by the country’s antitrust body, the Komisi Pengawas Persaingan Usaha (KPPU), over alleged monopolistic practices.
The probe revolves around Shopee’s recent decision to automatically direct users to affiliated shipping companies, primarily its in-house service, Shopee Xpress.
“This move hinders consumers from choosing desired courier services and pricing options,” explained Deswin Nur, spokesperson for KPPU.
The practice, according to the commission, has resulted in a “significant rise in shipping volume” for Shopee-affiliated companies, particularly Shopee Xpress.
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Potentially hefty penalties
Currently, the case is under investigation and awaiting trial. If found guilty, Shopee could face hefty penalties, including a minimum fine of 1 billion rupiah (approximately US$64,000) and a maximum of 50% of net profits or 10% of total sales earned during the violation period.
This development comes amidst Shopee’s aggressive expansion in Southeast Asia, including significant investments in logistics infrastructure.
Since launching Shopee Xpress in 2020, the company has doubled down on property and equipment investments, building over 300 hubs across the region as of February 2023.
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Implications for Shopee and the industry
This strategy aligns with the broader trend of e-commerce platforms like Lazada (Lazada Logistics) and Tokopedia (GoTo Logistics) establishing their delivery networks.
While Shopee Indonesia has yet to comment on the investigation, the outcome could have significant implications for the e-commerce landscape in Indonesia.
Increased regulatory scrutiny could potentially reshape how platforms interact with sellers and consumers, particularly concerning shipping options and pricing transparency.
As the investigation unfolds, it will be worth watching how Shopee responds and whether other major players face similar scrutiny in the future.
You can also read the original story in its entirety on https://www.techinasia.com/indonesias-antitrust-body-probes-shopee-alleged-monopolistic-practices
