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Indonesia’s KPPU Fines TikTok
(MENAFN) The Indonesian competition regulator, KPPU, announced on Monday that it will impose a fine of nearly $900,000 on TikTok for failing to promptly disclose its acquisition of the e-commerce platform Tokopedia.
At the start of 2024, TikTok secured a 75.01% ownership stake in Tokopedia.
According to regulations, the company was required to notify KPPU within approximately 30 working days after the transaction. However, TikTok did not meet this deadline.
KPPU clarified in a statement published on its official site that, “The transaction legally took effect on January 31, 2024.
This means (TikTok) had time until March 19 of last year to notify KPPU (of the acquisition).”
The authority further indicated that TikTok Nusantara (SG) Pte. Ltd., the entity responsible for handling the acquisition process, admitted to the delay and accepted the outcome of the regulatory investigation. They were described as being “cooperative” throughout the proceedings.
Taking into account TikTok's clean record and willingness to assist the investigation, the commission opted to reduce the amount of the penalty.
In its official release, KPPU confirmed the decision to enforce a financial penalty of 15 billion Indonesian Rupiah (roughly $900,000) on TikTok Nusantara (SG) Pte. Ltd.
The regulator added that the company must transfer the payment to the state treasury within 30 days of the ruling becoming legally enforceable.
At the start of 2024, TikTok secured a 75.01% ownership stake in Tokopedia.
According to regulations, the company was required to notify KPPU within approximately 30 working days after the transaction. However, TikTok did not meet this deadline.
KPPU clarified in a statement published on its official site that, “The transaction legally took effect on January 31, 2024.
This means (TikTok) had time until March 19 of last year to notify KPPU (of the acquisition).”
The authority further indicated that TikTok Nusantara (SG) Pte. Ltd., the entity responsible for handling the acquisition process, admitted to the delay and accepted the outcome of the regulatory investigation. They were described as being “cooperative” throughout the proceedings.
Taking into account TikTok's clean record and willingness to assist the investigation, the commission opted to reduce the amount of the penalty.
In its official release, KPPU confirmed the decision to enforce a financial penalty of 15 billion Indonesian Rupiah (roughly $900,000) on TikTok Nusantara (SG) Pte. Ltd.
The regulator added that the company must transfer the payment to the state treasury within 30 days of the ruling becoming legally enforceable.
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