On June 10, 2025, TikTok Shop, operating under TikTok Nusantara (SG) Pte. Ltd., responded to allegations of monopolistic practices from Indonesia’s Commission for the Supervision of Business Competition (KPPU).

These claims arose following TikTok’s acquisition of a majority stake in Tokopedia.

During a KPPU hearing in Jakarta, TikTok emphasized its commitment to user choice in payment and logistics services, as well as fair business practices on its platform.

Farid Fauzi Nasution, TikTok’s legal representative, said that the company complies with all conditional approvals proposed by KPPU.

These include prohibitions against tying and bundling practices, market power abuse, and limitations on cross-platform promotions.

To clarify the tying and bundling prohibition, TikTok proposed adding the phrase “that forces buyers to use such payment or logistics methods.”

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🔗 Source: Katadata

🧠 Food for thought

1️⃣ Indonesia follows global trend of intensified tech merger scrutiny

TikTok’s willingness to accept KPPU’s conditional approval aligns with a broader global pattern where tech companies face heightened regulatory oversight.

Between 2020 and 2023, over 75% of Big Tech M&A deals valued above $1 billion faced antitrust reviews in major markets, demonstrating how common such scrutiny has become 1.

The duration of antitrust investigations has lengthened significantly, from 6 months in 2015 to 14 months in 2023, creating incentives for tech companies to cooperate with regulators rather than engage in prolonged battles 1.

In 2022 alone, the US Federal Trade Commission challenged 67% of proposed Big Tech M&A deals exceeding $500 million, illustrating why TikTok might prefer conditional approval over risking a blocked transaction 1.

KPPU’s focus on preventing tying and bundling practices in the TikTok-Tokopedia case reflects global regulatory concerns about digital platform power, showing Indonesia’s alignment with international regulatory approaches.

2️⃣ E-commerce platforms increasingly adapt to regulatory frameworks

The TikTok-Tokopedia case demonstrates how e-commerce companies must navigate complex regulatory environments while pursuing growth strategies.

In 2022 and 2023 alone, at least $361 billion in announced deals globally faced regulatory challenges, highlighting the financial stakes involved in securing regulatory approval 2.

Companies are increasingly structuring deals with regulatory concerns in mind from the outset, which explains TikTok’s proactive acceptance of KPPU’s conditions rather than contesting them 2.

This adaptation extends beyond mergers to ongoing compliance, as seen in other markets where e-commerce platforms must adjust their business practices to satisfy regulatory requirements 3.

TikTok’s request to modify reporting requirements from quarterly to semi-annual reflects a practical business approach to compliance, acknowledging seasonal sales patterns while still maintaining regulatory oversight.

3️⃣ Indonesian regulatory approach reflects mature competition policy

Indonesia has demonstrated a consistent approach to enforcing antitrust laws against large companies, as evidenced by historical cases like the $2 million fine imposed on Temasek Holdings for anti-competitive practices in the telecommunications sector 4.

The conditional approval process being applied to TikTok shows Indonesia’s regulatory approach that seeks to prevent monopolistic behavior while still allowing business innovation and growth.

The specific conditions prohibiting tying and bundling practices address concrete competition concerns while permitting the transaction to proceed, reflecting a balanced regulatory philosophy.

This regulatory approach is particularly important in Indonesia’s fast-growing e-commerce sector, which has seen significant success with promotional events like Shopee’s 11.11 sale that generated over 11 million transactions in a single day 5.

The KPPU’s approach aligns with global practices that focus on preventing harm to competition rather than blocking mergers outright, helping to maintain a dynamic digital economy.

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