Indonesia announced that e-commerce company Shopee has admitted to violating competition law and will adjust its practices.

• Radynal Nataprawira, head of public affairs at Shopee Indonesia, stated that the company is always dedicated to adhering to all applicable regulations and laws in the Republic of Indonesia while conducting its business operations.
• Shopee Express was reportedly given priority in package deliveries to consumers, according to a preliminary investigation by KPPU last month.

On Wednesday, the Indonesian watchdog announced that Shopee and its courier service Shopee Express have admitted to violating a competition rule and have agreed to modify their current practices.

Shopee is the e-commerce arm of Southeast Asian tech giant .

The Indonesia Competition Commission stated that Shopee and Shopee Express had violated Law no. 5 of 1999 by agreeing to various behavioral change points determined by the KPPU Council in a hearing yesterday.

On June 20, Shopee presented changes to its existing practices, which were subsequently approved by the KPPU council.

Shopee Indonesia met with KPPU on 25 June to discuss the integrity pact points shared by KPPU last week. On 20 June, Shopee proposed changes to its user interface to improve its services and demonstrate compliance with the best practices, based on the feedback received and approved by KPPU, as stated by Radynal Nataprawira, head of public affairs at Shopee Indonesia, in an email to CNBC.

Nataprawira stated that Shopee is always dedicated to adhering to all applicable regulations and laws in the Republic of Indonesia while conducting business operations.

Shopee Express was reportedly given priority in package deliveries to consumers, according to a preliminary investigation by KPPU last month.

Shopee was accused of discriminatory behavior by the watchdog, as Shopee Express and J&T Express were automatically activated on the seller dashboard in mass while other companies with good service performance were not automatically selected.

Shopee Indonesia and Shopee Express employees in director positions have been named by KPPU investigators for their potential to impact competition and control the behavior of both companies.

Lazada, the Southeast Asian e-commerce arm of Chinese tech giant, is also being probed by KPPU for similar violations.

Lazada may face a fine of up to 50% of its net profit or 10% of its total sales in the relevant market if it is later proven to have violated, according to KPPU.