Partner Discrimination Practices, KPPU Penalty Grab Rp 30 Billion

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TEMPO.CO, Jakarta-The Commission for the Supervision of Business Competition (KPPU) has found guilty of PT Solusi Transportation Indonesia or commonly known as Grab Indonesia as Reported I and PT Indonesian Transportation Technology (TPI) as Reported 2 about allegations of driver partner discrimination.

“Tonight, July 2, 2020, sanctions for violations of Article 14 and Article 19 (d) of Law No. 5/1999 were reported to Report 1 and Report 2,” Commission Chairperson Dinni Melanie said in a press release late Thursday.

For violation of article 14, Grab is fined Rp 7.5 billion and TPI Rp 4 billion. Then, for violation of article 19 letter d, Grab is subject to a fine of Rp 22.5 billion and TPI of Rp 15 billion. That is, the total fines imposed on Grab Indonesia amounted to Rp 30 billion. While the total fines imposed by TPI are Rp 19 billion.

Article 14 reads: Business actors are prohibited from making agreements with other business actors aimed at mastering the production of a number of products included in a series of production of certain goods and or services in which each series of production is the result of processing or further processing, either in a direct or indirect series. directly, which can lead to unfair business competition and or be detrimental to the community.

Then for the sound of article 19: Business actors are prohibited from carrying out one or several activities, either alone or with other business actors, which may result in monopolistic practices and or unfair business competition in the form of: (d) discriminating against certain business actors.

Article 13 / KPPU-I / 2019 is a precursor to the KPPU initiative followed by investigations into alleged violations of vertical integration (Article 14), tying-in(Pasal 15 paragraph 2), and the practice of discrimination (Article 19 letter d). At the beginning of the case, the KPPU suspected that there had been a number of violations of business competition through a priority order given by Grab to the driver’s partner under TPI which was allegedly related to dual positions between the two companies.

In the course of this matter, the KPPU assesses the lack of effort tying-in that Grab does for services provided by TPI. However, the Assembly considered that there had been a practice of discrimination committed by Grab and TPI against individual partners compared to TPI partners, such as giving priority orders, suspend, and other facilities. “This practice has resulted in monopolistic practices and unfair business competition for non TPI partners and individual partners,” said Dinni.

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