KPPU Fines TikTok IDR 15 Billion Due To Late Reporting To Tokopedia Acquisition

JAKARTA - The Business Competition Supervisory Commission (KPPU) imposed a fine of Rp. 15 billion to TikTok Nusantara (SG) Pte. Ltd. regarding the delay in notification of the acquisition of the majority of PT Tokopedia shares.

This decision was read out in a session of the Commission Council chaired by Rhido Jusmadi along with two members, M. Fanshurullah Asa and M. Noor Rofieq which was held on Monday, September 29 at the KPPU Jakarta Headquarters.

As is known, this Tokopedia share takeover transaction is intended for TikTok to re-enter the e-commerce market in Indonesia by partnering with Tokopedia.

Through this acquisition, TikTok took over 75.01% of Tokopedia's shares, while 24.99% is still owned by PT GoTo Gojek Tokopedia Tbk. The effective acquisition since January 31, 2024, aims to separate the social media and e-commerce businesses.

During the trial, KPPU said that TikTok Nusantara (SG) Pte. Ltd. acknowledged the delay. They also did not reject the KPPU findings, and were cooperative throughout the examination.

Coupled with the TikTok factor which had no previous history of violations, KPPU finally eased sanctions against the short video media platform company, by fined Rp15 billion.

The fine must be deposited into the state treasury within 30 days after the decision has permanent legal force.

Meanwhile, a spokesperson for TikTok emphasized that it respects the KPPU's decision and is committed to upholding the principles of healthy business competition.

Currently, TikTok admits that it is studying the decision given and is discussing the next step.

"Even so, we remain committed to upholding the principles of healthy business competition and against KPPU," said a TikTok spokesperson in a statement received by VOI.