THE URGENCY OF ESTABLISHING A DIGITAL MARKET LAW AS AN INSTRUMENT FOR MONITORING BUSINESS COMPETITION IN THE DIGITAL
Abstract
The digital age has significantly transformed trading practices. Transactions that were traditionally conducted in conventional ways have now shifted to online platforms. The COVID-19 pandemic has further accelerated developments in the digital industry, which has consequently impacted how the Indonesia Competition Commission (KPPU) oversees business competition. However, Law Number 5 of 1999 concerning Monopolistic Practices and Unfair Business Competition has proven inadequate for enforcing regulations against business operators in the digital market. This research aims, first, to identify and analyze Indonesia’s legal framework for addressing unfair competition in the digital market. Second, it seeks to examine the role of the KPPU in supervising and addressing unfair competition in this sector. The study employs a normative legal approach with a qualitative research design. Law Number 5 of 1999 serves as the foundation for regulating unfair competition in Indonesia, complemented by Government Regulation (PP) Number 80 of 2019, which facilitates trade through electronic systems.
In practice, the KPPU’s enforcement and monitoring efforts in the digital market, particularly against active foreign business operators with detrimental effects on Indonesia, are far from optimal. This highlights the urgent need to establish a Digital Market Law to incorporate extraterritorial principles and strengthen the KPPU’s capacity to enforce fair competition in the digital marketplace.
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