Observers Say There Has Been No Change In Marketplace Behavior After The Decision Of The KPPU Session

Illustration (Photo: Doc Antara)

Jakarta Internet Governance Observer from the ID Institute, Sigit Widodo, highlighted that there has been no change in the behavior of the local market after the decision of the Business Competition Supervisory Commission (KPPU) session on allegations of discrimination treatment in the selection of shipping service companies.

Sigit said Shopee and Shopee Express had not yet implemented an integrity pact signed on July 2.

According to him, local market users are still having trouble choosing their delivery courier and its user interface is allegedly designed to hide other courier services.

When users try shopping at Shopee, it is still very difficult to find a courier option and it is suspected that the user interface still has the potential to be directed to Shopee Express. When the type of shipment is clicked, Shopee's recommendation courier option will appear immediately. Only after the recommended menu is clicked, then will several courier options appear below it. There seems to be a very effort to hide other courier choices," he told reporters, Wednesday, August 14.

Sigit said, the problem is not just the difficulty of finding a courier option. The recommendation courier gets a discount so that they can be sent free, while the other couriers use normal costs. It means that Shopee is still directing to use Shopee Express," said Sigit.

Previously, KPPU conducted an investigation into Shopee Indonesia, through its courier business, Shopee Express, for allegedly practicing unhealthy competition by establishing a system that would allow consumers to have no other choice of logistics courier when shopping.

KPPU investigators found that the marketplace has prepared algorithms that prioritize certain courier services, including Shopee Express and J&T, for each shipment of goods compared to other courier service options.

After undergoing several trials, the two reported parties acknowledged the Report of Alleged Violations (LDP) submitted by the Investigator and acknowledged the actions as outlined in the LDP, and submitted a request for an opportunity for Behavior Change.

Head of KPPU Public Relations Section Intan Putri after the third KPPU-Shopee trial, at the KPPU office, Jakarta, Tuesday, June 25, said that Shopee and its courier business could file a change in behavior because the case they were facing was in the preliminary examination stage.

This is regulated in KPPU Regulation Number 2 of 2023 concerning Procedures for Handling Monopoly Practices and Unhealthy Business Competition.

"After the signing of the behavior change integrity pact, the KPPU will create a supervisory team to monitor whether the points of behavior change are actually carried out by Shopee Indonesia. Supervision lasts 90 days. If within 90 days of supervision there is no change, the KPPU will continue the case to the follow-up trial," said Intan, quoted by Kompas.id.

In the integrity pact, Shopee Indonesia stated its commitment to always provide users with a choice of service for logistics courier partners.

This commitment is in line with Shopee's move to submit a proposal to change the service interface according to the input of the Business Competition Supervisory Commission.

"Because in the integrity pact, Shopee and Shopee Express stated that they would cooperate in any requested data verification or validation process, of course we hope that the KPPU can re-check whether Shopee has actually carried out the articles of the intercity pact or not. If not, of course KPPU must take the next steps so that healthy business competition can be guaranteed in the e-commerce business in Indonesia," concluded Sigit.