(VitalNews.org) – Shopee and its courier service. Shopee Express, have agreed to adjust their practices after they admitted to breaching a competition rule in Indonesia. Shopee is the e-commerce arm from the Southeast Asian technology giant Sea Limited.
Komisi Pengawas Persaingan Usaha, the Indonesia Competition Commission, said in a translated statement, “Shopee and Shopee Express admitted that they had violated Law no. 5 of 1999, regarding delivery services on the Shopee platform by agreeing to various behavioral change points determined by the KPPU Council in the hearing yesterday.”
The head of public affairs at Shopee Indonesia, Radynal Nataprawira, spoke out about the changes being made by the company. “On June twentieth, 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,” Nataprawira said.
KPPU said that in their investigation, they found that Shopee prioritized Shopee Express in every package delivery. They were also accused of “discriminatory behavior” because Shopee Express was “automatically activated en masse on the seller dashboard.”
The investigators also found that an employee held a director position in Shopee Indonesia and Shopee Express, which could potentially influence competition and control the behavior of both companies, causing conflict.
Said Komisi Pengawas Persaingan Usaha, “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.”
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