TikTok's Acquisition of Tokopedia Wins Conditional Approval from Antitrust Regulator
Main Takeaways
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JAKARTA, Investortrust.id — Indonesia’s antitrust watchdog has approved TikTok’s acquisition of Tokopedia, imposing a set of stringent conditions aimed at safeguarding fair competition in the country’s fast-growing digital commerce market.
The decision by the Indonesia Competition Commission, or KPPU, was delivered during a Commission Council hearing held in Jakarta on Tuesday, June 17, 2025. The session was chaired by Commissioner Budi Joyo Santoso, with Aru Armando and Gopprera Panggabean serving as council members.
The approval concludes months of scrutiny over potential risks of monopolistic practices following the merger between TikTok Nusantara (SG) Pte. Ltd., the local arm of the Chinese tech giant, and Tokopedia, one of Indonesia’s largest e-commerce platforms.
In a preliminary review issued on May 27, KPPU investigators raised concerns that the acquisition could lead to abuse of market dominance. The joint strength of TikTok and Tokopedia, it warned, could reshape Indonesia’s digital marketplace to the detriment of competition.
To mitigate those risks, KPPU mandated a series of compliance obligations. While TikTok and Tokopedia initially requested minor editorial and technical adjustments, both parties ultimately accepted all requirements without alteration.
The companies were represented at the hearing by Wilfred Halim, Global Lead for E-Commerce Risk Control and Security at TikTok, and Melissa Siska Juminto, President Director of Tokopedia and TikTok E-Commerce Indonesia.
Key Conditions of Approval
KPPU’s conditional approval sets out the following mandatory obligations:
• No tying or bundling in payment systems or logistics, including restrictions on discounts or promotional campaigns tied exclusively to either platform.
• No abuse of dominant position, including practices such as predatory pricing, preferential display of in-house products (self-preferencing), or discrimination against third-party sellers.
• Freedom of promotion must be preserved, allowing sellers to market products from outside the Tokopedia-TikTok ecosystem on TikTok’s social media platform.
• No exploitative pricing, such as unjustified price hikes that harm consumers or vendors.
• Support for micro, small, and medium enterprises (MSMEs), ensuring fair opportunities for MSMEs to grow on both platforms.
In addition, both companies are required to submit periodic reports over the next two years detailing e-commerce financials, logistics and payment partnerships, and MSME-related agreements.
KPPU will monitor the enforcement of these conditions through June 17, 2027. Should the companies violate any provisions, the case may proceed to a follow-up investigation stage, potentially leading to administrative sanctions under Law No. 5 of 1999 on the Prohibition of Monopolistic Practices.
