Indonesia's competition watchdog KPPU (Komisi Pengawas Persaingan Usaha) has fined TikTok IDR 15 billion for failing to submit a merger notification to the KPPU within the required timeframe when acquiring a 75.01% stake in Indonesian e-commerce platform Tokopedia, constituting a procedural violation.
According to Indonesian regulations, companies must report to the KPPU within 30 working days after completing an equity acquisition. The transaction took effect on January 31, 2024, and should have been reported by March 19 of the same year at the latest.
However, TikTok did not submit its first notification until August 7, 2024, and it was rejected by the KPPU meeting due to the reporting entity not meeting requirements. TikTok did not resubmit until an investigation was launched on August 8, 2024. The investigation determined that from March 20 (30 working days after the transaction took effect) to the start of the investigation, there was a delay of 88 working days, violating the Competition Law and related regulations.
A TikTok spokesperson responded by saying the company respects the KPPU's decision, is studying the penalty and discussing next steps, while committing to abide by the principles of fair competition.
The acquisition was intended to allow TikTok Shop to re-enter the Indonesian market by separating its e-commerce business, but procedural omissions led to regulatory penalties. The case will continue with the review of evidence completeness and the arrangement of the company's defense hearing.
Indonesia's competition watchdog KPPU (Komisi Pengawas Persaingan Usaha) has fined TikTok IDR 15 billion for failing to submit a merger notification to the KPPU within the required timeframe when acquiring a 75.01% stake in Indonesian e-commerce platform Tokopedia, constituting a procedural violation.
According to Indonesian regulations, companies must report to the KPPU within 30 working days after completing an equity acquisition. The transaction took effect on January 31, 2024, and should have been reported by March 19 of the same year at the latest.
However, TikTok did not submit its first notification until August 7, 2024, and it was rejected by the KPPU meeting due to the reporting entity not meeting requirements. TikTok did not resubmit until an investigation was launched on August 8, 2024. The investigation determined that from March 20 (30 working days after the transaction took effect) to the start of the investigation, there was a delay of 88 working days, violating the Competition Law and related regulations.
A TikTok spokesperson responded by saying the company respects the KPPU's decision, is studying the penalty and discussing next steps, while committing to abide by the principles of fair competition.
The acquisition was intended to allow TikTok Shop to re-enter the Indonesian market by separating its e-commerce business, but procedural omissions led to regulatory penalties. The case will continue with the review of evidence completeness and the arrangement of the company's defense hearing.