Indonesia’s Antitrust Agency Probes Shopee and Lazada for Anti-Competition Violations

Indonesia’s antitrust agency announced on Monday that it has launched investigations into the local units of prominent e-commerce platforms Shopee and Lazada for potential violations of anti-competition regulations. The companies under scrutiny are PT Shopee Internasional Indonesia and PT Ecart Webportal Indonesia, which manage the domestic operations of Shopee and Lazada, respectively.

Shopee is a subsidiary of Southeast Asian technology firm Sea Limited, while Lazada is owned by the Chinese conglomerate Alibaba Group. Both companies are key players in Southeast Asia’s e-commerce market, making the outcomes of these investigations significant for the regional industry.

The agency’s chairman, M. Fanshurullah Asa, highlighted that there are indications Lazada has engaged in discriminatory practices that could hinder competition and harm consumers. Although the specific details of these practices were not disclosed, the agency has collected early evidence suggesting violations by Lazada. These breaches, if proven, could lead to severe financial penalties for the company, amounting to up to 50 percent of its net profits or 10 percent of its total sales generated in the relevant market during the period of infringement.

The agency did not specify the exact nature of Shopee’s alleged violations but mentioned that the breaches are “similar” to those attributed to Lazada. The preliminary hearing for Shopee’s case is scheduled to begin on Tuesday.

Both Shopee and Lazada have yet to respond to requests for comment regarding the investigations.

This move by Indonesia’s antitrust body underscores the increasing regulatory scrutiny on major e-commerce platforms in the region. It also reflects broader efforts to ensure fair competition and protect consumer interests in Indonesia’s rapidly growing digital economy.

The outcome of these investigations could set important precedents for the operation of e-commerce companies in Indonesia and potentially influence regulatory approaches across Southeast Asia.