COMPETITION LAW AND ECONOMIC EFFICIENCY ON DIGITAL PLATFORMS: A STUDY OF SHOPEE IN INDONESIA

Abstract

Digital transformation has potential predatory pricing practices and significantly reshaped the landscape of trade in Indonesia, particularly through the emergence of e-commerce platforms such as Shopee. The dynamics of business competition in the digital space have introduced new legal challenges, especially concerning pricing practices, market dominance, and the protection of small enterprises. This study important because the rapid growth of digital platforms has outpaced existing lega frameworks, creating regulatory gaps that treaten market fairness and consumer protection.Using a normative juridical research method, it examines the principles outlined in Law No. 5 of 1999 and their implementation within digital business models. The analysis reveals that although Shopee enhances economic efficiency and broadens market access, there are indications of market dominance through cross-subsidization. Therefore, regulatory adjustments are necessary to ensure fair competition in the digital economy sector. Hence, this study contributes to bridging the theoretical and practical gap in understanding how traditional competition law can adapt to digital market dynamics.