Predatory Pricing in E-Commerce: Analyzing Indonesia’s Government Policy on Tiktok Shop

Abstract

Predatory pricing, or predator pricing strategy, is one of the issues affecting business competition in the digital era, especially on e-commerce platforms like TikTok Shop. This research aims to analyze the Indonesian government's policies in addressing the issue of predatory pricing on e-commerce platforms, particularly TikTok Shop. TikTok Shop, as a digital platform, offers highly competitive prices, even below production costs, which has the potential to monopolize the market and hinder local entrepreneurs. Based on an analysis of existing regulations, such as Law No. 5 of 1999 concerning the Prohibition of Monopoly Practices and Unfair Business Competition, as well as KPPU policies, this study identifies the steps that have been and will be taken by the government to tackle this issue. The study also discusses a literature review that includes various opinions from economic and legal experts on predatory pricing, as well as case study analyses from various countries. Using a descriptive qualitative approach, this research presents interviews with business actors and regulators to delve deeper into the effectiveness of existing policies and the obstacles in their implementation. The research concludes that the government needs to strengthen oversight and regulation of e-commerce platforms to protect local entrepreneurs from the negative impacts of predatory pricing.