- Indonesian watchdog investigates Shopee, Lazada for potential antitrust violations.
- Shopee accused of favoring own logistics over competitors.
- Lazada faces scrutiny over alleged discriminatory business practices.
Putting the e-commerce titans under the microscope
The Indonesian Competition Commission (KPPU) has launched an investigation into the local entities of e-commerce giants Shopee and Lazada over potential anti-competitive practices.
According to a statement from the agency, they found evidence suggesting Shopee’s algorithm prioritizes its in-house logistics service, Shopee Express. Additionally, both Shopee Express and longtime partner J&T Express enjoy prominent placement on Shopee’s seller dashboard.
The KPPU raised concerns about Handhika Wiguna Jahja, a director at Shopee Indonesia, simultaneously holding a director position at Shopee Express since June 2018.
This dual role could potentially allow Jahja to influence policies across both companies.
Level playing field or unfair advantage?
Regarding Lazada, the agency alleged the company engaged in potentially “discriminatory” actions hampering competition and potentially harming consumers.
Details surrounding these alleged violations remain undisclosed, but the KPPU stated it has been monitoring Lazada closely since 2021.
The preliminary probe into Shopee’s practices commenced on May 28, 2024. A Shopee Indonesia spokesperson affirmed the company’s “commitment to complying with all applicable regulations and legislation in the Republic of Indonesia.”
Tech in Asia has reached out to Lazada for comment.
To read the original article: https://www.techinasia.com/indonesia-probes-lazada-shopee-anticompetition-practices
