ICC Conducts A Comprehensive Assessment of The Tokopedia Acquisition Notification by Gojek.

Wednesday, February 23, 2022

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Jakarta (3/2) – Indonesia Competition Commission (ICC) conducted a comprehensive assessment process of the acquisition transaction made by PT Aplikasi Karya Anak Bangsa (GOJEK) over PT Tokopedia. The comprehensive assessment process involved an Assessment Panel consisting of Commissioner Chandra Setiawan as Chair of the Assessment Panel and Commissioners Kurnia Toha and Yudi Hidayat as members. The assessment process will be carried out until March 14, 2022.

As a background information, each merger and acquisition transaction that meets certain criteria must be notified to ICC after the transaction is effective. With these provisions, GOJEK made a notification of its acquisition of PT Tokopedia to ICC on August 9, 2021. After going through the clarification process, ICC assessed that the acquisition transaction met various criteria for notification obligations and was completed, so it entered the assessment process on November 4, 2021.

ICC conducts an assessment through 2 (two) stages, namely Initial Assessment and Comprehensive Assessment. A preliminary assessment is carried out through market concentration analysis to determine the potential impact of transactions on business competition in the industry and/or market. If the market concentration analysis finds the potential impact, the preliminary assessment process will proceed to the comprehensive assessment stage. In line with ICC Regulation Number 3 Year 2019, the Comprehensive Assessment is carried out by the Assessment Panel, which consists of a maximum of 3 (three) Commissioners determined by the Commissioners Meeting.

The Comprehensive Assessment will focus on several analyzes such as market entry barriers, potential anti-competitive behavior, efficiency, and/or bankruptcy. It is estimated that the assessment process will be carried out until March 14, 2022. After the assessment, ICC may issue a Decision that concludes whether there is an allegation of monopolistic practice, and/or unfair business competition; or conditional approval of the transaction.