TikTok fined Rp 15 billion for failing to declare acquisition of Tokopedia on time

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Indonesia's competition regulator KPPU (Commission for the Supervision of Business Competition) fined TikTok 15 billion rupiah for failing to submit an M&A declaration to the KPPU within the stipulated time frame, which constituted a procedural violation, when TikTok acquired a 75.01% stake in Indonesian e-commerce platform Tokopedia.

According to Indonesian regulations.Companies are required to report to KPPU within 30 working days after completing an equity acquisition. The transaction took place onEffective January 31, 2024, to be filed no later than March 19 of the same yearThe

But TikTok didn't come into being untilFirst filing not until August 7, 2024and becauseFailure to meet the requirements of the subject of the declaration was rejected by the KPPU meeting.. TikTok did not resubmit thereafter until theSurvey launched on August 8, 2024The The investigation determined thatFrom March 20, when the transaction has been in effect for 30 business days, to the date the investigation is initiated.There was a delay of 88 working days, in violation of the Competition Act and accompanying regulations.

A TikTok spokesperson responded by saying that it respects the KPPU's decision and is studying the penalty and discussing follow-up measures, while promising to abide by the principle of fair competition.

The acquisition is intended to allowTikTok ShopReturning to the Indonesian market by divesting its e-commerce business, but procedural omissions led to regulatory penalties. The case will continue to be heard on the completeness of the evidence and a defense session will be scheduled for the business.

# Chinese Capital Express