The Indonesia Competition Commission ("KPPU") has recently issued three new guidelines aimed at improving competition enforcement in the country. These guidelines cover various aspects of competition cases, including the definition of relevant markets in the digital economy, the measurement of negative impacts and corresponding fines for antitrust violations, and bid-rigging practices. The guidelines provide valuable insights into KPPU's views and methods, assisting both KPPU and the public in understanding competition issues more effectively.
The first guideline, the Relevant Market Guideline, introduces updated rules for defining relevant markets, especially in the context of the digital economy. It recognises multi-sided markets and the specific considerations involved in analysing them. The second guideline, the Negative Impacts Guideline, establishes criteria and indicators for measuring the negative impact of monopolistic practices and unfair competition. It emphasises the assessment of unreasonable prices and adopts a case-by-case approach. Lastly, the Bid Rigging Guideline addresses bid-rigging practices and introduces a new scheme that expands the range of parties involved. It acknowledges the use of indirect evidence, including algorithmic evidence such as the Bid Rigging Indicator Analysis System (BRIAS).
These guidelines signify KPPU's commitment to data-driven and quantitative-based approaches in competition enforcement. Businesses may wish to revisit their competition law training and procurement policies to ensure compliance and align their strategic decisions with the evolving landscape. It is particularly important for businesses to be aware of the impact of these guidelines on their market positioning, and to consider revising their procurement policies to ensure compliance with competition rules in Indonesia.
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