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Jakarta Post

Antimonopoly agency to summons Telkomsel over ‘buy up’

News Desk (The Jakarta Post)
Jakarta
Thu, June 23, 2016

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Antimonopoly agency to summons Telkomsel over ‘buy up’ Telkomsel sales promotion girls check Telkomsel's data service on their cell phones. (Kompas/-)

T

he antimonopoly agency will summons telecommunications company Telkomsel in its probe into an alleged unfair practice by the subsidiary of state-owned telecommunications firm Telkom outside Java.

Business Competition Supervisory Commission (KPPU) head M. Syarkawi Rauf said Telkomsel – which controls 80 percent of the mobile communications market outside Java – was scheduled to meet the summons on June 24 to clarify the unfair practice allegation.

"We want to clarification over the allegation that Telkomsel has tried to monopolize the market by buying up Indosat Oreedoo’s SIM Cards. It is reported to have happened outside Java," he said on Wednesday night as quoted by kompas.com in Jakarta.

According to the Monopoly Law, he continued, the move was categorized as a monopoly practice. Telkomsel is not allowed to impede customers from making contact with its competitors.

"Our law doesn’t forbid the monopoly situation. It is the monopoly practice that is forbidden such as by sabotaging natural relations between businesses and consumers. […] Telkomsel controls more than 50 percent of voice, data and text messaging. The buy up is a new case,” he said.

Syarkawi asserted that the business supervisory agency would hand down a sanction to Telkomsel if the allegation was proven. Among the sanctions prepared are; blacklisting the company or imposing an operational restriction. (ags)

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