Indonesia, the company’s seizing Tokopedia after not following the regulations of the Chinese social media platform Tiktok’u about $ 900,000 fined.
The country’s observer announced that it immediately explained the details of the agreement with the largest e-commerce platform of Indonesia’s social media company.
Tiktok made a blunder
According to reports, the Business Competition Supervision Commission (KPPU) announced the penalty during the hearing in Jakarta on 29 September. KKPU said that the social media platform missed the legal date to inform the online retailer’s $ 840 million share.
In January 2024, Tiktok acquired 75.01% of E-Commerce Giant Tokopedia from the local group Goto. In Indonesia, however, the law states that companies should notify KPPU within 30 days after completing an agreement. In this law, Tiktok had to inform the KPPU until 19 March 2024.
During the hearing, Tiktok, who was the responsible asset, did not object that he could not complete the regulatory process. However, KPPU was soft to the social media company and said that he was a criminal for the first time without violations and cooperated with researchers.
“We respect and appreciate the decision of KPPU and we are determined to support fair business competition principles.”
Tiktok spokesman.
The company was fined 15 billion Rupiah and ordered to solve the fine Within 30 days After the decision is confirmed. Tiktok’s problems are not only in Indonesia. The future in the United States has been uncertain for a while due to data security concerns due to Chinese origin.
However, US Vice President JD Vance announced that the US platform has successfully separated the PLAIN from the Chinese parent company. “We can ensure that the algorithm is not used as a propaganda tool by a foreign government,” Fox News said to FOX News.
He was looking for a way around the Bayta arrangements
Tiktok entered Indonesia in 2021 and competed more than 100 million users, but in October 2023, a regulatory tension shadow, the government banned the Tiktok store and threatened small traders and consumer protection.
Later, he found a way to go to organize while folding his tiktok shop to TOKOPEDIA, a unicorn horse grown at home, and thus returned to the market. Tiktok’s exchange under the direction of TOKOPEDIA, eliminated the ban on social media -based retail.
The Goto Group, known to resisted Chinese rivals in Indonesia, maintained 25% of Tokopedia in the agreement. The partnership allows Tiktok store operations to be merged to the Tokopedia unit in the country.
Goto’s General Manager Patrick Walujo said, “The process is a big step for the Goto Group and will continue to benefit Indonesia and Msmes.”
KPPU’s decision shows the increasing examination of international technology companies in the largest economy in Southeast Asia. Although the fine is minimum compared to the size of the transaction, it emphasizes how strict regulators are about global companies to be committed to competition laws.
The KPPU will prevent Tiktok from maintaining its goals in Indonesia. However, it serves as a reminder and a warning to keep the social media platform carefully in the arena and to re-participate in the broad e-commerce market in Indonesia.
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