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Business watchdog punishes Aqua for unhealthy competition
The Business Competition Supervisory Commission (KPPU) has punished PT Tirta Investana, a producer of Aqua bottled water to pay a fine of Rp 13.84 billion (US$968,800) to the state for violating the business competition law at a hearing in Jakarta on Tuesday.
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The Business Competition Supervisory Commission (KPPU) building in Jakarta (Kontan/Daniel Prabowo)
T
he Business Competition Supervisory Commission (KPPU) has penalized PT Tirta Investana, the producer of Aqua bottled water, with a fine of Rp 13.84 billion (US$968,800) to be paid to the state for violating the Business Competition Law at a hearing in Jakarta on Tuesday.
The commission also fined Aqua’s distributor PT Balina Agung Perkasa (BAP) Rp 6.29 billion.
Presiding commissioner Kurnia Sya’ranie said at a hearing that the companies had violated several articles of Law No. 5/1999 on monopoly prohibition.
Under the law, KPPU may fine a violator between Rp 1 billion and Rp 25 billion. “The two defendants were found guilty of violating Article 15, paragraph (3b) and Article 19a and b of Law No 5/20199,” Kurnia said when reading out the verdict.
The decision was based on a report by PT Tirta Fresindo Jaya (Mayora Group), the producer of bottled water brand Le Minerale, in October, 2016, which complained that Aqua and its distributor had prohibited several shops from selling Le Minerale bottled water.
KPPU found that the companies had threatened to downgrade the status of several shops that sold Le Minerale bottled water from star outlet (SO) to wholesaler (WO). With the change in status, the shops would have to buy Aqua at higher prices. (bbn)
