Indonesia Slaps TikTok with Monopoly Allegations—Platform Insists It Plays Fair

TikTok''s dominance faces fresh scrutiny as Indonesian regulators accuse the social giant of anti-competitive practices. The platform fires back, claiming it''s just ''innovating better'' than rivals—classic Silicon Valley doublespeak.

Meanwhile, Wall Street analysts whisper about ''regulatory arbitrage opportunities''—because nothing fuels growth like skirting the rules.

TLDR;

• TikTok is under investigation by Indonesian regulators for monopoly concerns linked to its acquisition of Tokopedia.
• The company maintains it follows fair business practices and proposes clearer language to avoid forced bundling of services.
• Indonesia’s actions reflect a global pattern of tighter oversight on Big Tech mergers and acquisitions.
• Regulators aim to balance economic growth with competitive fairness in the fast-growing digital economy.

TikTok has pushed back against monopoly allegations in Indonesia following its acquisition of a controlling stake in Tokopedia, one of the country’s largest e-commerce platforms.

TikTok Defends Tokopedia Acquisition 

During a public hearing held on June 10, 2025, the company sought to reassure the Indonesian competition watchdog that it is committed to maintaining fair business practices and respecting market dynamics.

The Indonesian Commission for the Supervision of Business Competition (KPPU) launched an investigation into TikTok’s parent company, TikTok Nusantara (SG) Pte. Ltd., after concerns emerged that the deal could harm competition in Indonesia’s digital marketplace. TikTok’s legal team, led by Farid Fauzi Nasution, emphasized that the platform has complied with all regulatory conditions and is not forcing users into exclusive systems for payments or logistics.

Regulator Issues Warning 

The KPPU’s main concerns center on potential anti-competitive behavior such as bundling services or compelling sellers and consumers to use TikTok’s own infrastructure, limiting options for other service providers. TikTok responded by proposing clearer language in the agreement to ensure that users are not compelled to use certain payment or delivery services, a MOVE that aims to eliminate ambiguity and reinforce its commitment to voluntary choice on the platform.

In a gesture that signals cooperation over confrontation, TikTok is also open to the set of conditions imposed by the commission. These include restrictions on cross-platform promotions and prohibitions on abusing market dominance, reflecting the company’s strategy to align with both local and global regulatory expectations.

Indonesia Tightens Tech Oversight

Indonesia’s approach reflects a broader global shift in how digital mergers are regulated. Over the past few years, countries worldwide have become more cautious about the growing power of tech giants. In the United States and Europe, authorities have ramped up scrutiny of large-scale mergers, often placing companies under lengthy review processes or outright challenging deals.

TikTok’s willingness to accept Indonesia’s conditional approval mirrors what has become a pragmatic norm among tech firms: avoid lengthy legal entanglements by working within the regulatory frameworks from the outset. For TikTok, this means not only accepting existing conditions but also recommending adjustments like shifting compliance reports from quarterly to twice a year. This WOULD allow the company to accommodate seasonal variations in sales while still maintaining transparency.

Balancing Growth with Competition

Notably, Indonesia, home to a vibrant and rapidly growing e-commerce ecosystem, is seen as a key digital battleground in Southeast Asia. The government is working to ensure that innovation and business expansion do not come at the expense of healthy market competition. Past actions, such as the multimillion-dollar fine against Temasek Holdings, demonstrate that Indonesia is prepared to act firmly when it sees signs of market manipulation.

By permitting TikTok’s acquisition to proceed under strict conditions, the KPPU aims to strike a balance between encouraging foreign investment and safeguarding competitive integrity. The commission’s stance allows for continued innovation and expansion while ensuring that dominant players do not misuse their influence to crowd out smaller competitors.