Indonesia probes Shopee, Lazada units for alleged competition rule breaches

Indonesia's anti-trust agency said on Monday that it is investigating the local units of e-commerce platforms Shopee and Lazada for suspected violations of anti-competition rules.

The agency said it was closely watching PT Shopee Internasional Indonesia and PT Ecart Webportal Indonesia, the domestic units of Shopee and Lazada, respectively.

There are indications that Lazada has engaged in discriminatory actions that potentially hinder competition and harm customers, the agency's chairman M. Fanshurullah Asa said in a statement.

He did not disclose details of the indications, nor specify Shopee's breaches, but called both companies' violations "similar."

If the violations are proven, Lazada could face fines of up to 50% of its net profit or 10% of its total sales earned within the relevant market during the period of infringement, he continued.

Asa also said the agency was expected to begin the preliminary hearing of Shopee's case on May 28.

Shopee, owned by Southeast Asian technology firm Sea Limited, and Lazada, a subsidiary of China's Alibaba Group, are key players in the region's e-commerce landscape.