Indonesia’s antitrust agency has imposed a fine of 15 billion rupiah, equivalent to $900,000, on TikTok for failing to notify regulators within the required timeframe about its acquisition of e-commerce platform Tokopedia. According to Deswin Nur, spokesperson for the Indonesia competition commission, TikTok Nusantara, the entity established for the transaction, did not submit the necessary notification in a timely manner.
The acquisition, which was completed in January 2024, involved TikTok purchasing 75.01 percent of Tokopedia from PT GoTo Gojek Tokopedia for $840 million. This move allowed TikTok to relaunch its online shopping service in Indonesia, following a government ban on social media-based sales aimed at protecting small businesses. The Indonesia competition commission had previously conditionally approved the acquisition, assessing that it would not have a negative impact on business competition.
However, the agency emphasized that notification must still be submitted in a timely manner by the acquiring business entity, and TikTok’s failure to do so constitutes administrative negligence. A TikTok spokesperson stated that the company respects the agency’s ruling and remains committed to upholding fair business competition principles.
The fine imposed on TikTok serves as a reminder of the importance of regulatory compliance in business transactions. The acquisition of Tokopedia by TikTok marks a significant development in Indonesia’s e-commerce landscape, and the company’s commitment to fair competition principles will be closely watched. As the online shopping market in Indonesia continues to evolve, companies operating in the sector must ensure that they adhere to regulatory requirements and maintain a level playing field.
The Indonesia competition commission’s decision to fine TikTok highlights the need for businesses to prioritize transparency and compliance in their operations. The agency’s role in enforcing antitrust regulations is crucial in promoting fair competition and protecting consumer interests. As the digital economy in Indonesia grows, the commission’s efforts to ensure regulatory compliance will be essential in maintaining a competitive and sustainable business environment.
