Indonesia’s antitrust regulator has issued a second summons to TikTok and Tokopedia as it expands scrutiny of alleged anti-competitive practices in the country’s fast-growing e-commerce sector.
Indonesia's competition watchdog has issued a second summons to TikTok and affiliated e-commerce platform Tokopedia over alleged unfair competition practices, as the regulator intensifies its push for tighter oversight of the digital commerce sector.
The Indonesian Competition Commission, or KPPU, confirmed the summons after both companies failed to respond to an initial notice. The probe was triggered by a complaint filed on April 15 by the Association of E-commerce Logistic Companies, or APLE.
KPPU spokesperson Deswin Nur told MLex that a preliminary investigation is ongoing, focused on securing concrete evidence before proceeding further.
"Currently, letters of summons have been issued to several parties involved, including TikTok and Tokopedia,"
he said.
APLE accuses TikTok of monopolistic practices, unlawful vertical integration and predatory pricing, centering on TikTok Shop's delivery policies, which the association claims hinder competition in the logistics sector. It also alleges algorithmic bias favoring products within TikTok's own ecosystem, limiting visibility for external businesses, and that transactions are being steered toward logistics providers integrated with the platform.
Panji Satria Utama, a lawyer at Satya Law Office representing APLE, said the practices have disrupted the competitive landscape, particularly for small and medium-sized enterprises.
The association invoked Minister of Trade Regulation No. 31 of 2023, which mandates separation between social media and e-commerce operations, and is calling on the KPPU to impose structural remedies if violations are confirmed — including separating social media from e-commerce services, ensuring neutrality in logistics selection, and capping subsidies that distort market dynamics.
On April 28, the KPPU questioned APLE executives, who submitted supporting documents and provided details on the alleged conduct by TikTok Shop. The association was represented by chairman Sonny Harsono, according to Panji.
TikTok, originally a short-video platform, expanded into e-commerce by enabling direct transactions. In 2024, after the Trade Ministry barred social media platforms from facilitating commercial transactions, TikTok's local unit acquired a 75 percent stake in Tokopedia to maintain its e-commerce operations.
E-commerce oversight
The summons comes as the KPPU moves to strengthen oversight of Indonesia's digital commerce sector more broadly. The regulator currently has four ongoing investigations in the digital and e-commerce sector, with the TikTok probe as a fifth still being filed, KPPU Chairman M. Fanshurullah Asa told Commission VI of the House of Representatives on Tuesday.
Fanshurullah said the regulator is involved in harmonizing amendments to Minister of Trade Regulation No. 31 of 2023. Provisions under consideration include transparency of platform fees, disclosure of goods' origin to curb illegal imports, a ban on e-commerce companies acting as producers, and stronger platform accountability for artificial intelligence use.
He said the regulator is particularly focused on algorithmic transparency, warning that opaque technology can enable cartels, discrimination, self-preferencing, and vertical integration. Algorithms play a strategic role in determining product rankings, recommendations, pricing, and demand distribution, while the use of big data risks raising barriers to market entry and deepening business dependence on dominant platforms.
The KPPU has identified five key competition concerns in the digital sector: abuse of dominant positions, vertical integration and self-preferencing, discrimination in services and market access, predatory pricing and cross-subsidies, and anti-competitive use of algorithms and AI.
In enforcement actions, Fanshurullah cited the KPPU's case against Google for abuse of its dominant position through the Google Play Billing System, which resulted in a fine of 202.5 billion rupiah ($12 million) in early 2025. That ruling has been upheld by the Supreme Court.
He also highlighted behavioral remedies as a corrective tool, citing a discrimination case involving delivery services by a major Indonesian marketplace. Remedial measures generated a monetary impact and economic surplus of 1,477 trillion rupiah between July 2024 and August 2025, the KPPU said.
Trade Minister Budi Santoso said Wednesday the ministry is also amending Regulation No. 31 of 2023, with revisions focused on increasing visibility of local products, improving transparency in digital platform partnerships, strengthening consumer protection, and tightening digital technology governance. The ministry will step up enforcement — including account takedowns, blacklisting, and temporary service blocks — in coordination with the Ministry of Communications and Digital Affairs.
The TikTok probe echoes a 2024 KPPU investigation into Shopee for allegedly prioritizing its own Shopee Xpress delivery service. That case was resolved after Shopee acknowledged the practice and signed an integrity pact with the regulator committing to change its conduct.
Source: MLex
