KPPU Investigation into Alleged Monopoly
📌 PT Tirta Investama (parent company of Aqua/Danone) is facing a legal process initiated by the KPPU (Business Competition Supervisory Commission) over allegations of monopolistic practices.
🔎 One specific allegation involves practices where if a retailer is caught selling Brand B while contracted for Brand A, their status is demoted from a primary seller to a wholesaler, resulting in higher purchase prices.
⚖️ Indonesian Law No. 5 of 1999 categorizes practices like oligopoly, price fixing, territorial division, boycotts, cartels, collusion, and monopsony (single buyer) as violations of fair competition.
📊 A company controlling over 50% market share can be suspected of monopolistic practices.

Aqua/Danone's Legal Defense and Process Concerns
🗣️ Aqua's legal counsel attended a preliminary examination at the KPPU, highlighting discrepancies between the investigator's public presentation and the actual written report of the alleged violation.
🚫 Protests were lodged because crucial facts presented publicly by investigators were missing from the official violation report provided to Aqua, hindering their ability to respond substantively.
🏛️ KPPU commissioners acknowledged the need for fairness and mandated investigators to provide all data that was presented but not included in the official violation text.

Market Dominance and Competition Stance
🕰️ Aqua emphasizes its position as a pioneer since 1971, noting the market has grown significantly, suggesting no significant barriers prevent new players from entering.
📈 Dominant market position itself is not illegal under global competition laws; what is prohibited is the abuse of that dominant position.
❓ The company expressed surprise at the recent accusations, noting that there have been no prior objections regarding market conditions despite their sustained dominance based on brand building and efficiency.

Key Points & Insights
➡️ Monopolistic practices, including price fixing and cartels, are explicitly regulated under Indonesia's anti-monopoly laws (Law No. 5/1999).
➡️ A crucial indicator for investigation is a company holding more than 50% market share, potentially leading to scrutiny over dominant position misuse.
➡️ Procedural fairness in regulatory hearings is vital; parties must receive all evidence presented against them to formulate a proper defense.
➡️ Aqua maintains that its dominant position is a result of being a pioneer and building a strong brand since 1971, not through illegal market obstruction.

📸 Video summarized with SummaryTube.com on Nov 25, 2025, 03:46 UTC