OECD kpcdb

1. Scope

The Law prohibits monopoly and monopsony (Chapter IV) and the abuse of dominant position (Chapter V).

 

Under Article 25(1), an enterprise in a dominant position is prohibited from:

 

a)  imposing trade terms with the intention to prevent and/or hamper the consumers to acquire competitive goods and/or services, both in prices or quality; or

b)  restricting the market and technology development, or

c)  hampering other entrepreneurs having the potential to become their competitors top enter the relevant market

 

Other prohibited conducts for an enterprise with a dominant position are price discrimination (Article 19(d)), predatory pricing (Article 20), interlocking management in competing companies (Article 26), and owning or creating a majority shareholding in several companies in the same market (Article 27 on cross-ownership).

 

Articles 17 and 18 also apply to cases of monopoly or monopsony respectively.

2. Assessment

Under Article 1(4) elements to consider include whether the business enterprise does not have a significant competitor in terms of market share, and has a higher position than of its competitors in terms of financial capacity, access to supply or sales and the ability to adjust supply or demand of goods and services.

 

According to Article 25(2), an enterprise is considered to have a dominant position where one enterprise or a group of enterprises controls more than 50% of the market share. Two or more enterprises or a group of enterprises that control over 75% of the market share are also considered to be in a dominant position.

3. Remedies and sanctions

Remedies and administrative sanctions: Under Article 47, administrative sanctions may be imposed as follows: (1) a fine (see Section I.4); (2) compensation for damages; (3) an order to stop activities proven to have cause monopolistic practices/unfair business competition and/or damages to the public; (4) an order to end the abuse of dominant position.

 

Criminal sanctions: Under Article 48, violations of Articles 17 through 19, 25 and 27 are subject to a criminal fine between IDR 25 billion and IDR 100 billion, or imprisonment up to 6 months.

 

 

* This information is based on Competition Law in Asia-Pacific: A Guide to Selected Jurisdictions (2018).