Court Fines Grab Indonesia over Illegal Business Practices
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3 July 2020 08:14 WIB
TEMPO.CO, Jakarta - The Business Competition Supervisory Commission (KPPU) on late Thursday found PT Solusi Transportasi Indonesia, also known as Grab Indonesia, guilty together with PT Teknologi Pengangkutan Indonesia (TPI) over alleged discrimination against its business partners or drivers.
“This evening on July 2, 2020, the court sanctions [the two entities] over violation of Article 14 and Article 19 (d) of Law No.5/1999,” said the commission’s judicial panel chair, Dinni Melanie, in Thursday’s press release.
In violation of Article 14, Grab has been fined Rp7.5 billion with additional Rp22.5 billion for violations against Article 19. Meanwhile, TPI was fined for Rp4 billion in violation of article 14 and Rp15 billion for violating Article 19. This brings the total fine for Grab to Rp30 billion.
Article 14 bans business entities to merge in a deal with other business entities with a goal to control the production of a number of products directly or indirectly which can cause unhealthy competition or harms members of the public.
Article 19 oversees the violations regarding the practice of monopoly and discriminatory acts against other business entities. The KPPU court found no evidence of tying-in done by Grab against the services of TPI but found that discrimination took form in monopoly practices and unhealthy competition against non-TPI partners and individual business partners.
Read: Singapore's Grab Puts Partnership with Troubled Wirecard on Hold
EKO WAHYUDI
