Indonesia’s antitrust agency has said it wants to examine the historic merger between two of the country’s startups to guard against monopoly practices.
As US News and World Report wrote on Thursday, May 20, the KPPU plans to examine the multibillion-dollar merger between the e-commerce company Tokopedia and the carpooling and payment company Gojek, the largest transaction in the country’s history.
Once finalized, the merger will create the GoTo Group, the region’s largest privately-owned technology company, a company providing, among other things, transportation services, couriers, financial services, online shopping and food delivery. Neither company responded to requests for comment, according to the article.
The KPPU said it would review the merger to “focus on various relevant markets in the GoTo Group ecosystem, as well as the potential for monopoly practices or unfair business competition that may arise after the transaction.”
The agency said transactions in the digital marketplace typically involve a complex analysis of network effects. The KPPU called on other business owners and members of the public to report trade competition rule violations once the GoTo Group is formed.
But even if the KPPU determines that the merger could lead to unhealthy business competition, it won’t derail the deal, US News noted. Rather, the GoTo Group will be responsible for adjusting its operations to promote fair competition.
In addition to creating a so-called super app and launching the largest company in the region, this merger is also the largest between two internet platforms based in Asia. Gojek AndrÃ© Soelistyo will oversee the newly merged entity as CEO of the GoTo Group, while continuing to lead payments and financial services under the new GoTo Financial brand. Meanwhile, the president of Tokopedia Patrick cao will become president of GoTo Group. Kevin Aluwi will remain CEO of Gojek and William Tanuwijaya will remain CEO of Tokopedia.
âOur goal has always been to create a business that creates social impact on a large scale, leveling the playing field for small businesses and giving consumers equal access to goods and services across the country,â Tanuwijaya said earlier. this week, claiming that the merger will advance the Indonesian economy and make the world’s wider digital market more accessible to everyone.