Jakarta, June 18, 2025 – The Indonesia Competition Commission (KPPU) has formally issued a conditional approval for TikTok Nusantara’s acquisition of PT Tokopedia, following full acceptance of the proposed requirements and compliance schedule by both companies.
The ruling was delivered on June 17 during the Commission’s hearing of Case No. 01/KPPU-M/2025 in Jakarta. The panel, led by Commissioner Budi Joyo Santoso with members Aru Armando and Gopprera Panggabean, confirmed that TikTok Nusantara (SG) Pte. Ltd. and Tokopedia have agreed to unconditionally implement all antitrust safeguards initially proposed by KPPU investigators.
Background and Concerns
In a prior review on May 27, KPPU identified the acquisition as potentially leading to market monopolization and unfair competition in Indonesia’s e-commerce sector. Concerns included risks of predatory pricing, self-preferencing, and tying/bundling practices that could harm both consumers and smaller businesses.
Initial technical objections from the companies regarding the wording and data submission timelines were later dropped. In the most recent hearing, TikTok was represented by Wilfred Halim (Global Lead, E-Commerce Risk Control and Security), and Tokopedia by Melissa Siska Juminto (President Director, Tokopedia and TikTok E-commerce Indonesia). Both parties pledged full compliance without further edits.
Key Antitrust Conditions
The conditional approval requires TikTok and Tokopedia to:
- Maintain freedom of logistics and payment options, without bundling these with promotions.
- Avoid abusing market dominance, including bans on:
- Predatory pricing
- Display bias (self-preferencing)
- Restricting merchants from operating across platforms
- Allow TikTok users to freely promote products from other e-commerce platforms.
- Avoid unjustifiable price hikes based on market position.
- Ensure equal opportunity for MSMEs on both platforms.
Ongoing Monitoring
KPPU will monitor compliance for two years, requiring:
- Quarterly financial reports on the integrated platform’s revenue, fees, and cost structure.
- Biannual updates on logistics and payment service partners.
- Annual copies of contracts with major and minor partners in shipping, payment, and merchant categories.
The oversight period runs until June 17, 2027. Failure to comply may result in the case progressing to a Further Examination phase and potential administrative sanctions under Indonesia’s competition laws.
With the approval issued, the Commission has officially closed the current review proceedings.
Source: https://kppu.go.id/wp-content/uploads/2025/06/Siaran-Pers-No.-038_KPPU-PR_VI_2025.pdf
