Indonesia Probes Shopee, Lazada For Breaching Competition Rules

Indonesia's anti-trust agency said it is investigating the local units of e-commerce platforms Shopee and Lazada for suspected violations of anti-competition rules, Stanley Widianto and Fanny Potkin reported for Reuters.

The companies are PT Shopee International Indonesia and PT Ecart Webportal Indonesia, which oversee the domestic operations of Shopee and Lazada, respectively. I Photo: Shopee Facebook

The companies are PT Shopee International Indonesia and PT Ecart Webportal Indonesia, which oversee the domestic operations of Shopee and Lazada, respectively. Shopee, owned by Southeast Asian technology firm Sea Ltd., and Lazada, the Southeast Asian arm of Alibaba, did not immediately respond to requests for comment.

The agency's hearing into the conduct of Shopee would start on Tuesday, it said, without giving details of a potential punishment.

The agency found early evidence of violations by Lazada, which it said is facing a maximum fine of 50% of its net profits or 10% of its sales earned during the time of the alleged breaches.