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Oct 12, 2022 · In this article, we provide a general overview summarizing the Prohibited Pricing Mechanisms under the Competition Law, addressing the following matters: (i) General Overview on Antitrust in Indonesia; (ii) Prohibited Pricing Mechanisms; (iii) Sanctions; and (iv) Concluding Remarks.
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- Overview of Competition Laws
- Enforcement and Administration
- Anti-Competitive Agreements and Other Conduct
- Abuse of Dominant Position
- Exceptions
- Mergers and Acquisitions
- Other Prohibitions
- Penalties and Liabilities
- Leniency
- Extraterritorial Application
The Anti-Monopoly Law prohibits many kinds of agreements and acts of “business actors.” Business actors are defined as any person or entity which is established in Indonesia or does business in Indonesia. Some of these acts and agreements are illegal per se, that is, the illegality of the alleged act or agreement depends solely on whether it fits w...
The primary enforcement authority is the Business Competition Supervisory Commission (KPPU), an independent body with power to investigate alleged violations and impose administrative sanctions. The Anti-Monopoly Law provides for criminal investigation and prosecution. To date, however, this has not resulted in actual criminal investigation or pros...
3.1 Oligopoly and oligopsony
The Anti-Monopoly Law prohibits an agreement between business actors to jointly control: 1. the production and/or marketing of a product (oligopoly) or 2. the purchase of a product (oligopsony), if the agreement may cause monopolistic practices and/or unfair competition.
3.2 Unfair pricing practices – price fixing and resale price maintenance
The Anti-Monopoly Law prohibits price-fixing agreements between competing business actors and agreements to price discriminate without qualification. Competing business actors are prohibited from agreeing to fix prices below the market price if the agreement may cause unfair competition. Likewise, minimum resale price maintenance is prohibited if it may cause unfair competition.
3.3 Market allocations
Competing business actors are prohibited from agreeing to allocate the market for products if this agreement may cause monopolistic practices and/or unfair competition. This includes vertical and horizontal allocation.
“Dominant position” is defined as a situation where a business actor: 1. no longer has any significant competitors in the relevant market in terms of the market share controlled; 2. has a higher position than all of its competitors in terms of financial capability, access to supply or sales, and capability to adjust the supply or demand for certain...
Article 50 of the Anti-Monopoly Law exempts the following actions and agreements from this law’s application: 1. actions and agreements the purpose of which is to implement current laws and regulations; 2. agreements related to intellectual property (e.g., the licensing of intellectual property), trade secrets and franchising; 3. agreements to set ...
Under the Anti-Monopoly Law, business actors are prohibited from merging or consolidating business entities or acquiring shares in companies if these actions may cause monopolistic practices and/or unfair competition.
7.1 Monopoly and monopsony
A market share of 50 percent or more of the production or sale of a product within a relevant market qualifies a business actor as a monopoly. Likewise, control of 50 percent or more of the purchase of a product within a relevant market qualifies a business actor as a monopsony. A monopoly or monopsony is prohibited if it may cause monopolistic practices or unfair competition.
7.2 Restrictive practices
The Anti-Monopoly Law prohibits the following restrictive practices if they may cause monopolistic practices or unfair competition: 1. barring competitors from entering the market; 2. barring customers from doing business with competitors; 3. limiting distribution of products; 4. discriminating against other business actors; or 5. predatory pricing. Businesses are prohibited from fixing tenders and obtaining confidential information if these acts may cause unfair competition. Conspiracy to ob...
The KPPU is the primary enforcement body of the Anti-Monopoly Law, having wide authority to investigate and try cases (subject to review by the courts). The KPPU is authorized to impose a range of administrative penalties, including: 1. nullification of all agreements or mergers, consolidations and acquisitions which violate the Anti-Monopoly Law; ...
There is no leniency program in Indonesia. The KPPU may consider imposing a lesser penalty in appreciation of a good gesture to comply from a party under investigation, on a case-by-case basis.
There are two cases where the KPPU has asserted jurisdiction over overseas tender participants who otherwise did not have any connection with Indonesia. In the Temasek cross-shareholding case, the KPPU asserted that it has jurisdiction over foreign parties who directly and indirectly control Indonesian companies but otherwise do not have any connec...
Jul 16, 2024 · The primary legislation governing antitrust practices in Indonesia is Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition (last amended by Government Regulation in Lieu of Law Number 2 of 2022 Concerning Job Creation, which has been stipulated as Law by virtue of Law Number 6 of 2023), commonly known ...
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Antitrust menceritakan seorang pemrogram yang idealis dan sebuah perusahaan besar (NURV) yang menawarkan sejumlah besar uang untuk para pemrogram berbakat yang mau bekerja untuk mereka. CEO NURV (Robbins) awalnya terlihat baik, tetapi Milo Hoffman (Phillippe) perlahan mulai menyingkap rahasia tersembunyi di balik kegiatan NURV.
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