TikTok Refutes Monopoly Claims Following Tokopedia Share Acquisition

TEMPO.CO, Jakarta - TikTok Nusantara (SG) Pte. Ltd. denies allegations of monopoly practices following its acquisition of PT Tokopedia shares. The potential for a monopoly was previously raised by the Business Competition Supervisory Commission (KPPU) based on a comprehensive assessment of the e-commerce share acquisition transaction.

During a hearing at the KPPU office today, TikTok stated that sales practices on the Tokopedia and Shop Tokopedia platforms align with existing regulations. "We understand and agree with the KPPU's assessment in the comprehensive assessment report that both Tokopedia and Shop Tokopedia have collaborated with various logistics and payment service providers, most of which also have simultaneous collaborations with other e-commerce platforms in Indonesia," Farid Fauzi Nasution, TikTok's legal counsel, said at the KPPU office in Jakarta on Tuesday, June 10, 2025.

The KPPU investigative team found that while there was no potential closure of market access or significant barriers to entry for new businesses, the network effects were substantial and could potentially be used in sales strategies through tying and bundling practices. These practices are feared to harm consumers or other businesses, especially SMEs.

Farid also stated that TikTok and Tokopedia offer payment and logistics options not bound by tying or bundling practices. "We are committed to continuing these practices to ensure compliance with the prohibition of tying and bundling practices as intended in this commitment," Farid affirmed.

Furthermore, TikTok stated that it does not prohibit its users from promoting products sold on e-commerce platforms outside of Tokopedia or Shop Tokopedia. Farid mentioned that the TikTok social media platform upholds users' freedom to share content, including promoting products found on e-commerce platforms other than Tokopedia and Shop Tokopedia, "as long as the content complies with the community guidelines of the platform and the applicable laws and regulations," Farid added.

Previously, on January 31, 2024, TikTok Nusantara (SG) Pte. Ltd. effectively acquired 75.01 percent of PT Tokopedia's shares. This acquisition involved two major entities: Tokopedia as one of the key players in Indonesia's e-commerce market and TikTok as a social media platform with shopping features. The KPPU stated that the combined asset value and sales from this transaction exceeded Rp5 trillion, thus requiring notification to the KPPU.

The KPPU investigator completed a comprehensive assessment of the acquisition of PT Tokopedia shares by TikTok Nusantara (SG) Pte. Ltd. The results indicated that the transaction has the potential to create monopoly practices and/or unhealthy business competition. Consequently, during a hearing on Tuesday, May 27, 2025, the KPPU investigator proposed various conditional approvals to be applied to both entities.

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