Indonesia Fines TikTok for Late Reporting of Tokopedia Deal

Key Takeaways

• Fine Issued: TikTok fined 15 billion rupiah (S$1.15 million) for late reporting of Tokopedia acquisition.
• Deal Details: Acquisition involved a 75.01% stake in Tokopedia worth US$840 million in January 2024.
• Regulatory Requirement: Indonesia’s KPPU mandates merger notifications within 30 working days.
• TikTok’s Response: Company accepted the decision and pledged commitment to fair competition.

Deep Dive

Indonesia’s competition watchdog has handed TikTok a 15 billion rupiah (about $1.15 million) fine after the company failed to promptly report its takeover of Tokopedia, the country’s largest e-commerce platform, Reuters first reported.

The penalty stems from TikTok’s January 2024 acquisition of a 75.01 percent stake in Tokopedia from PT GoTo Gojek Tokopedia in a deal worth $840 million. While the transaction gave TikTok a commanding position in Indonesia’s booming online retail market, the company missed the strict 30-day deadline to notify the Business Competition Supervisory Commission (KPPU), which oversees merger filings.

KPPU said the delay constituted a violation of Indonesia’s merger control regime, which is designed to prevent market concentration from undermining fair competition. The commission emphasized that timely reporting is not a mere formality but a safeguard allowing regulators to assess potential risks before deals reshape the competitive landscape.

TikTok, owned by China’s ByteDance, acknowledged the decision and struck a conciliatory tone. “We respect and appreciate KPPU’s decision and remain committed to upholding the principles of fair business competition,” a company spokesperson said.

The fine underscores the scrutiny facing TikTok as it tries to expand its reach beyond short-form videos into commerce and payments. With Southeast Asia a critical growth market, compliance with local competition rules is becoming as important as user adoption. For Indonesia, the ruling is also a signal to global tech players: the country’s regulators are prepared to enforce the letter of the law when it comes to digital consolidation.

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