26 July 2024
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This discrimination is unavoidable. Furthermore, predatory pricing (selling at a loss) has become a business strategy considered appropriate to win the market. E-commerce and start-ups race to offer goods at low prices by giving discounts as well as providing the best quality and service, which affects market concentration and competition, resulting in an unhealthy business climate.
Responding to the issue of potential unfair competition on digital economy platforms, the Community Service Team of the Faculty of Law, Universitas Sumatera Utara, in collaboration with the University of New South Wales, Sydney, Australia, and the Business Competition Supervisory Commission (KPPU) Regional Office I, organized a community service activity under an international collaboration scheme in the form of a focused discussion entitled “Competition Law Approach to Digital Economy Development: Sharing Experience in Indonesia and Australia”.
The event, held in a hybrid format at the DPF Room, Faculty of Law, USU, featured speakers including community service partners such as Professor Deborah Healey from the School of Private & Commercial Law, UNSW Sydney, who attended online; Ridho Pamungkas as Head of KPPU Regional Office I; and Professor Ningrum Natasya Sirait, a professor at the Faculty of Law USU, with Dr. Robert, SH.M.H., as moderator. Participants in attendance, both online and offline, included lecturers and students from the undergraduate, master’s, and doctoral programs at the Faculty of Law USU, representatives from the Cooperatives and MSME Office of North Sumatra, the North Sumatra Chamber of Commerce and Industry, the Employers’ Association of North Sumatra, the North Sumatra MSME Association, the Central Board of the Indonesian Creative MSME Association (DPP IKM UMK Nusantara), as well as digital economy business actors in Medan.
Dean of the Faculty of Law USU, Dr. Mahmul Siregar, SH.M.Hum, in his opening remarks, stated that there is still a lack of understanding among business actors regarding developments in the digital economy in Indonesia within the context of competition law.
“This activity is expected to provide new insights to overcome obstacles and challenges in supervising digital economy business competition in Indonesia to create a healthy business climate,” said Mahmul.
The discussion then continued with comparative talks about digital economy competition problems in Indonesia and Australia. The discussion began with a presentation from Prof. Ningrum Natasya Sirait, who emphasized that in anticipating the negative impacts of digital economy on MSMEs, the government should take an active role in accommodating all stakeholders’ interests—businesses, associations, the public, and others. The government should also take concrete steps to solve various problems.
“The government must be careful. When an e-commerce platform is shut down, it is the MSMEs on that platform who suffer the consequences,” Ningrum explained.
Professor Ningrum Natasya Sirait’s statement was supported by Professor Deborah Healey, who explained that Australia also faces similar challenges to Indonesia concerning the relationship between digital giants and other business players.
“The Australian government funds the ACCC (the Australian Competition and Consumer Commission) to research specific issues related to digital platforms. The results of this research take the form of recommendations or policy advice for amendments to competition law in Australia,” Deborah revealed.
Next, Ridho Pamungkas stated that one problem in competition in the digital economy sector is the rivalry between established players and new market innovators. Regarding MSMEs in the digital economy era, Ridho encourages MSMEs to be digitally literate.
“MSMEs must be able to use digital technology to develop their businesses. The presence of digitalization should not be resisted, but utilized,” said Ridho.
During the question and answer session, participants were very enthusiastic in asking questions to the speakers.
In the concluding session, Prof. Ningrum Natasya Sirait reiterated that changes in behavior are not an admission of guilt by businesses suspected of anti-competitive behavior. This situation should be wisely addressed by the Indonesian government through legal certainty in making competition supervision regulations, as Australia has done. Mutual learning is normal for the sake of progress, and we will continue to share experiences and knowledge to be able to provide consumer welfare in accordance with the goals of Competition Law.
Reporter: Siti Amelia
Source: https://mimbarumum.co.id/fgd-fh-usu-kppu-dan-unsw-sidney-bicarakan-ekonomi-digital/
