The anti-trust agency in Indonesia announced on Monday that it is currently conducting an investigation into the local units of popular e-commerce platforms Shopee and Lazada.

According to Reuters, the investigation is focused on potential violations of the country's anti-competition rules.

Indonesia Launches Investigation Against Shopee, Lazada

PT Shopee Internasional Indonesia and PT Ecart Webportal Indonesia are responsible for managing the operations of Shopee and Lazada within the country.

The agency announced that the hearing into Shopee's conduct is scheduled to begin on Tuesday. However, no information regarding a potential punishment was provided.

Early evidence of violations has been discovered by the agency, leading to potential consequences for Lazada. The company could face a significant fine, either a percentage of its net profits or a percentage of its sales during the time of the alleged breaches. 

The agency has discovered preliminary indications of misconduct by Lazada, which could result in a significant penalty. The potential fine could amount to 50% of the company's net profits or 10% of its sales during the period in question.

"There are indications that Lazada has engaged in actions that may hinder competition and have potentially harmed consumers," stated the agency.

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Labor Malpractice Probe in Philippine Against Shopee

Recently, resolution has been filed at the House of Representatives in the Philippines to initiate an investigation into the reported labor malpractices of Shopee Express, with the aim of addressing these issues through legislation.

In recent years, there have been multiple instances of Filipino Shopee workers protesting against what they claim are poor working conditions and labor violations at the company.

In the resolution, it was highlighted that in 2021, there was a protest by SPX drivers due to prolonged delays in compensation and salaries, as well as the absence of social and welfare benefits such as accident and health insurance.

In 2022, both Shopee and PSX made the decision to let go of a significant number of employees, despite their claims of business expansion in the Philippines. This included the unilateral termination of services for their SPX drivers.

The resolution expressed concern over a significant rise in labor cases involving SPX in recent years, particularly those related to labor-only contracting and union busting, Manila Stadard reported.

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