Shopee Complies With ICC’s Instruction To Rectify Partnership With Driver Partners.

Wednesday, June 21, 2023

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Jakarta (07/06) – PT Shopee International Indonesia (Shopee) has rectified the profit sharing partnership with Shopeefood driver partners as instructed by the Indonesia Competition Commission (ICC) in Written Warning I in Case Number 01/KPPU-K/2023 with regard to the Alleged Violation of Article 35 paragraph (1) of Law Number 20 of 2008 regarding the Implementation of Partnership of PT Shopee International Indonesia. ICC made such conclusion after getting through the rectification monitoring period conducted during the set implementation period for the rectification of Written Warning I.

ICC has previously received a report from the public on the partnership agreement implemented by Shopee in the Provisions of the Statement of Approval of Services and Code of Ethics Provisions of Shopeefood’s Driver Partners. Various forms of provisions regulated in such partnership are alleged in violation of Article 35 paragraph (1) of Law Number 20 of 2008. After going through the Phase I and Phase II Preliminary Partnership Examination processes, ICC issued a Written Warning Letter I instructing various rectification commands to PT Shopee International Indonesia.

During the 14-day warning period granted, it was summed up that PT Shopee International Indonesia had made various partnership improvements with Shopeefood Driver Partners. Such partnership improvements have a positive impact on the 300,000 Shopeefood Driver Partners, including among them, the 920 ex-Driver Partners who have been reactivated. Driver Partners have also obtained transparency of information about reasons for suspending or breaking up partners and violation points will be removed 60 days after Driver Partners not violating the Driver Partner’s Code of Ethics and Provisions of Services. In addition, Driver Partners also get access to information about Provisions of Partner Services, Code of Ethics and Appeal Procedures in the Driver Partner’s Application. With regard to such Provisions of Partner Services, PT Shopee International has amended the clauses of the provisions regarding the granting of technical guidance and unilateral breaking up of partners.

Based on its monitoring, ICC summed up that Shopee had executed all the rectification instructions contained in Written Warning I given. With the implementation of the said written warning, ICC stopped the Partnership case handling process and issued a Commission Stipulation on the case in question.