Indonesia conditionally approves TikTok's acquisition of Tokopedia

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Indonesia's Business Competition Supervisory Board (KPPU) has given conditional approval to TikTok Nusantara Pte Ltd's acquisition of shares in PT Tokopedia.This follows speculation that the acquisition deal could trigger monopolistic behavior, with KPPU investigators having reported that the deal could lead to monopolization or unfair business competition.The conditions proposed by the KPPU include ensuring that payment methods and logistical choices remain open and are not tied to various types of promotions, discounts, etc.; and prohibiting the abuse of a dominant position of market power, includingpredatory pricing, self-preferential treatment in platform presentation, discrimination against out-of-group products, and restrictions on sellers' access to the Tokopedia andTikTok Shopoff-platform transactions; guaranteeing TikTok users the right to promote their products on other e-commerce platforms, prohibiting market exploitation through unreasonable price increases, and providing equal development opportunities for MSMEs. The two companies are required to submit reports every three months for two years on total revenue from e-commerce activities, sources of revenue, and the amount of commissions charged to five categories of sellers; regular reports on documentation of agreements with logistics service providers, payment service providers, and partner merchants; and a monitoring period from the date of approval until June 17, 2027, with a further review phase if conditions are not fulfilled, and the parties to the deal eventually agreed to the conditions imposed by the investigators.

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