Prohibition of Technology-Based Dominance in the Anti-Monopoly RUU

The regulation concerning digital economy has become a main focus in the Draft Law (“Anti-Monopoly RUU”) on the Amendment to Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition, as most recently amended by Law No. 1 of 2026 on Criminal Sanction Adjustments (collectively referred to as “Law 5/1999”). Faisal Santiago, Professor at the Faculty of Law, Borobudur University, in his input regarding the Anti-Monopoly RUU, stated that algorithm-based dominance needs to be explicitly formulated in order to assess whether it violates the principles of fair business competition.

“Because almost everything is based on algorithm and can be monopoly, we need to determine whether this constitutes fair competition or not, and then formulate it within the Anti-Monopoly RUU,” he said to Hukumonline.

Faisal added that nearly all digital economic activities are currently operated on an algorithm-based model, which creates the potential for unhealthy market control if not clearly regulated. He also pointed out that the Anti-Monopoly RUU already contains several provisions governing business competition in the context of the digital economy.

Based on the Anti-Monopoly RUU document obtained by Hukumonline, the issue of technological dominance is addressed through strengthened regulation of dominant position. Under Article 25 paragraph (2) letter c, business actors are prohibited from obstructing potential competitors from entering the relevant market by utilizing various instruments of power, including technological power.

“Obstructing other business actors who have the potential to become competitors from entering the relevant market, whether by using financial power, network power, technological power, or unfair business practices,” reads Article 35 paragraph (2) letter c of the Anti-Monopoly RUU.