Komdigi Targets Antitrust Loopholes in the Digital Ecosystem

The Ministry of Communication and Digital Affairs (“Komdigi”) is drafting a revision to Regulation of the Government No. 71 of 2019 on the Organization of Electronic Systems and Transactions (“Regulation”). Hendra Sudaryana, Director of Digital Ecosystem Development at Komdigi’s Directorate-General of Digital Ecosystems, explained that this revision will fundamentally change how the government treats Electronic System Organizers (“PSE”), particularly large-scale digital platforms.

“These new rules are designed to transform the Regulation from what was originally merely a rigid instrument of compliance and enforcement into a transitional regulation that is pro-ecosystem,” Sonny told Hukumonline.

In substance, the revision of the Regulation will address several loopholes in the digital ecosystem. One of these relates to platform accountability and the protection of domestic players from unfair business competition practices. Komdigi has identified the practice of “Anti-Competitive Default Lock-In,” which is frequently employed by Digital Gatekeeper Platforms that control access to the digital market.

“Without strict regulatory intervention, local Micro-, Small-, and Medium-Scale Enterprises (MSMEs) are expected to remain in a position of weak bargaining power,” he added.