Jakarta: The merger of Gojek and Tokopedia to form GoTo did not violate business competition, according to Vice Chairman of the Indonesia Competition Commission (KPPU) Guntur Syahputra Saragih.
"The decision was taken after the KPPU conducted a thorough assessment of the aspects arising from the merger," KPPU Vice Chairman Guntur Syahputra Saragih noted in a written statement received in Jakarta, Tuesday.
Saragih remarked that certain industries or businesses when merged could cause market concentration. However, Gojek and Tokopedia, which are technology companies and focus on digital services, have a multiset market, so they do not create market concentration.
"In essence, the GoTo merger has no significant impact," Saragih emphasized.
In line with that, KPPU's Director of Mergers and Acquisitions Aru Armando confirmed to several impact analyzes related to the Gojek-Tokopedia merger being conducted by the assessment commission team and the secretariat, including the impact of barriers on market entry, the effect of anti-competition, and the impact on unilateral conduct.
"The conclusion that can be drawn is that there are no significant indications related to the potential for unfair business competition," Armando stated.
Hence, the KPPU approved the merger or acquisition of shares, as there was no monopolistic practice or unfair competition in the takeover of shares by the company.
Gojek had earlier made a merger notification regarding Tokopedia to the KPPU on August 9, 2021. This was done in compliance with KPPU's provisions, wherein for every merger and acquisition transaction that meets certain criteria, the KPPU must be notified after the transaction is effective.