Receive guidance from EU digital market law
in a nutshell
Digital Market Law (EU Regulation 2022/1925, “DMA“) with the aim of promoting fair business practices in the digital industry in Europe, which came into force on 1 November 2022. While the DMA itself may not have a direct impact on Indonesia, Indonesia’s competition authority, KPPU, often cite enforcement developments and thought leadership from other prominent jurisdictions, including the EU.Digital businesses operating in Indonesia use DMA as a navigation tool. and clients may find the following practical risk mitigation tips helpful.
The DMA provides guidance on how to identify gatekeepers or platforms that may have scale and access advantages to data and on which other business operations rely.
Although there is no equivalent of DMA in Indonesia and there have been no public consultations on proposed regulations for the same purpose, the currently applicable Indonesian competition law includes unfair business practices in the digital sector. There are provisions that apply when there is a
Summarizing guidance from both the DMA and Indonesian competition law, here are some of the steps companies can take to avoid risk.
- Do not pass data collected by one business unit to another business unit (or affiliates) for unfair advantage.
- Provides transparency in managing user data and data sharing.
- Consider appropriate safeguards when exchanging certain types of information. In particular, do not inadvertently promote or participate in (hub and spoke) cartels, including by sharing commercially sensitive information.
- parity clause
- Evaluate whether the parity clause you want to apply to your contract could have anti-competitive effects.
- If you have multiple business units (or affiliates) that provide complementary services to each other, ensure fair competition and independent cooperation throughout.
- Please review your cooperation and bundling practices with affiliates. A certain level of advantage can result in market seizures and other anti-competitive effects.
- Interlocking officers
- Please review the concurrent posts of directors, especially among competing companies. They may have anti-competitive effects and may constitute violations.
- Users and business partners should not be deprived of choice to access and use competing products and services.
Our webinar on November 23, 2022 will cover the latest topics in antitrust and competition issues and enforcement in Indonesia. Join us in this interactive discussion. Click here for more information.
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