JAKARTA (Reuters) – Indonesia’s competition agency said on Monday it was investigating local units of e-commerce platforms Shopee and Lazada for alleged violations of anti-competition rules.
These companies are PT Shopee Internasional Indonesia and PT Ecart Webportal Indonesia, which control the internal operations of Shopee and Lazada, respectively.
The agency did not specify what the alleged anti-competition violations were.
Shopee, owned by Southeast Asian technology company Sea Ltd (NYSE:), and Lazada, a division of Southeast Asia Alibaba (NYSE:) did not immediately respond to requests for comment.
The agency’s hearing in Shopey’s case will begin Tuesday, the agency said, without providing details of the potential punishment.
The agency found early evidence of wrongdoing by Lazada, which it said faces a maximum fine of 50% of its net profits or 10% of its sales generated during the alleged violations.
“There are indications that Lazada has taken discriminatory actions that potentially discourage competition and indications that its actions have caused harm to consumers,” the agency said.