Legal protections against unfair competition in e-commerce: Analysis of Indonesian and Thailand framework adequacy

Lu Sudirman; Nipon Sohheng; Agustianto; Shenti Agustini; Nurlaily

doi:10.26555/jhn.v16i1.29157

Authors

Lu Sudirman Faculty of Law, Universitas Internasional Batam, Indonesia
Nipon Sohheng Faculty of Political Science, Ramkhamhaeng University, Thailand
Agustianto Faculty of Law, Universitas Internasional Batam, Indonesia
Shenti Agustini Faculty of Law, Universitas Internasional Batam, Indonesia
Nurlaily Faculty of Law, Universitas Internasional Batam, Indonesia

DOI:

https://doi.org/10.26555/jhn.v16i1.29157

Keywords:

Online Marketplace, Unfair Competition, Legal Implications, Legal Development

Abstract

Introduction to the Problem: Unfair competition threatens economic growth and is harder to detect in the digital era. For Indonesia and Thailand, growing digital economies depend on fair online marketplaces, yet these platforms face risks like price manipulation and visibility bias. Addressing these issues is crucial to unlocking their global trade potential.

Purpose/Study Objectives: The purpose of this research is to analyze the normative potentials and challenges in enforcing antitrust laws in Indonesian and Thai online marketplaces, particularly in addressing antitrust challenges that are unique to the digital environment.

Design/Methodology/Approach: This research utilizes normative legal research method and a comparative legal approach to examine the frameworks for protecting against unfair competition in online marketplaces in Indonesia and Thailand.

Findings: Findings of this study highlight that the existing antitrust laws in Indonesia and Thailand are not equipped to address the unique challenges of digital markets, such as algorithm-driven price fixing, product visibility manipulation, and data monopoly. The study proposes a legal framework model focusing on enhancing algorithmic transparency, ensuring search neutrality, establishing robust market monitoring, and integrating data governance with antitrust measures. This model aims to bolster fair competition and consumer protection, positioning both nations to leverage their digital economy potentials effectively.

Paper Type: Research Article

References

Agusalim, L., Anggraeni, L., & Pasaribu, S. H. (2022). The economy of Indonesia: Driven by physical or human capital? JEJAK, 15(1), 10–28. https://doi.org/10.15294/ jejak.v15i1.34418

Aryanti, A. N., Suryana, S., Hendrayati, H., Rahmi, P. P., Wijaya, F., & Herlina, L. (2019). Digital innovation strategy for creative industries: responding to competition challenges in the digital age. INOVASI: Jurnal Ekonomi, Keuangan Dan Manajemen, 2(23), 404–414.

Azizah, A. (2018). Fair competition through price agreement between businessmen associated in ASEAN economic community. Muhammadiyah Law Review, 2(1), 9–17.

Bakalinska, O., Holubieva, V., & Vinnytskyi, O. (2019). The moral and ethical principles on the formation of competition culture. Amazonia Investiga, 8(23), 469–475.

Bamberger, K. A., Lobel, O., Davidoff-Solomon, S., Barry, J., Fleisher, V., & Weinstein, S. (2017). Platform Market Power. Berkeley Technology Law Journal, 32(3), 1051–1092.

Boehlke, J. (2020). Some remarks on methodological foundations of Unified Growth Theory. In K. Nermend & M. Łatuszyńska (Eds.), Experimental and Quantitative Methods in Contemporary Economics (pp. 3–16). Springer International Publishing.

Büchel, J., & Rusche, C. (2020). Competition in the digital economy: An analysis of gatekeepers and regulations (26/2020; IW-Policy Paper).

Chen, L. (2024). Data ownership and digital governance: Promoting enterprise cooperation and sustainable development. Journal of Education, Humanities and Social Sciences, 28(ALSS 2024), 207–216. https://doi.org/10.54097/3tdv5346

Chopra, R., & Khan, L. M. (2020). The case for “Unfair Methods of Competition” rulemaking. University of Chicago Law Review, 87(2), 357–379.

Coglianese, C., & Lai, A. (2023). Algorithms and competition in the digital economy (258; E-Competitions: Antitrust Case Laws e-Bulletin).

Disemadi, H. S. (2022). Lenses of legal research: A descriptive essay on legal research methodologies. Journal of Judicial Review, 24(2), 289–304. https://doi.org/10. 37253/jjr.v24i2.7280

Disemadi, H. S., & Budi, H. S. (2023). Enhancing trade secret protection amidst e-commerce advancements: Navigating the cybersecurity conundrum. Jurnal Wawasan Yuridika, 7(1), 21–45. https://doi.org/10.25072/jwy.v7i1.608

Elizabeth, Y. N., Yu, L. M., Palmer, D. P., & Anyomi, B. (2021). Unfair competition in the field of intellectual property rights: Analyzing concepts, acts of unfair competition and laws. Journal of Politics and Law, 14(3), 44–50. https://doi.org/ 10.5539/jpl.v14n3p44

Evangelista, R., Guerrieri, P., & Meliciani, V. (2014). The economic impact of digital technologies in Europe. Economics of Innovation and New Technology, 23(8), 802–824. https://doi.org/10.1080/10438599.2014.918438

Friedman, D. A. (2016). Reconsidering fictitious pricing. Minnesota Law Review, 100(3), 921–982.

Fu, X., Avenyo, E., & Ghauri, P. (2021). Digital platforms and development: a survey of the literature. Innovation and Development, 11(2–3), 303–321. https://doi.org/ 10.1080/2157930X.2021.1975361

Fussenegger, G., & Robertson, V. H. S. E. (2020). The role of antitrust authorities regarding the digital economy. In Graz Law Working Paper Series (02–2020; Graz Law Working Paper Series). https://doi.org/10.2139/ssrn.3701206

Gangjee, D. S. (2024). Law(s) against unfair competition: the legitimacy of the UK approach. Journal of Intellectual Property Law & Practice, 19(2), 90–100. https:// doi.org/10.1093/jiplp/jpad105

Gautier, A., Ittoo, A., & Van Cleynenbreugel, P. (2020). AI algorithms, price discrimination and collusion: a technological, economic and legal perspective. European Journal of Law and Economics, 50(3), 405–435. https://doi.org/ 10.1007/s10657-020-09662-6

Grimes, W. (2020). Adam smith, the competitive process, and the flawed consumer welfare standard. GRUR International, 69(1), 3–13. https://doi.org/10.1093/ grurint/ikz020

Hung, B. Q., Nham, N. T. H., & Ha, L. T. (2023). The importance of digitalization in powering environmental innovation performance of European countries. Journal of Innovation and Knowledge, 8(1), 1–22. https://doi.org/10.1016/ j.jik.2022.100284

Lemley, M. A., & McKenna, M. P. (2020). Unfair disruption. Boston University Law Review, 100(1), 71–131.

Limanseto, H. (2022, April). Digital economy acceleration in e-commerce and online travel becomes one of the effective strategies to encourage national economic performance. Kementerian Koordinator Bidang Perekonomian Republik Indonesia. https://ekon.go.id/publikasi/detail/4092/digital-economy-acceleration-in-e-commerce-and-online-travel-becomes-one-of-the-effective-strategies-to-encourage-national-economic-performance

Maass, M. (2014). Foreign policies and diplomacies in Asia: Changes in practice, concepts, and thinking in a rising region (M. Maass (ed.); 1st ed.). Amsterdam University Press.

Mediana. (2024, May). Diduga ada ketidakadilan, layanan pengiriman Shopee dan Lazada diselidiki. Kompas.Id. https://www.kompas.id/baca/ekonomi/2024/ 05/30/diduga-tidak-adil-layanan-pengiriman-shopee-dan-lazada-diselidiki-kppu

Muslih, M., & Supeno, S. (2022). Financial technology: digital legal challenges and Indonesia’s economic prospects after Covid-19 outbreak. Legality : Jurnal Ilmiah Hukum, 30(2), 255–266. https://doi.org/10.22219/ljih.v30i2.22784

Nurhayati, Y. (2023). Regulatory analysis digital markets act (DMA) European Union in business competition. International Journal of Law, Environment, and Natural Resources, 3(1), 107–124. https://doi.org/10.51749/injurlens.v3i1.46

Paranata, A., Pahrudin, Muzayyanah, S., & Trinh, T. H. (2023). Identification of factors influencing entrepreneurial behavior: Unveiling start-up business initiatives in Indonesia. Humanities and Social Sciences Communications, 10(1), 1–12. https://doi.org/10.1057/s41599-023-01896-4

Petrović, S., & Jakšić, T. (2020). Regulation and competition of taxi services. In J. Marin, S. Petrović, M. Mudrić, & H. Lisičar (Eds.), Uber—Brave New Service or Unfair Competition: Legal Analysis of the Nature of Uber Services (pp. 153–180). Springer International Publishing. https://doi.org/10.1007/978-3-030-31535-1_5

Pinitjitsamut, M., Thamthanakoon, N., & Yaemklin, S. (2023). The impact of e-commerce on Thai’s economy and its role plays in driving economic recovery after COVID-19 pandemic – the CGE Analysis (MPRA Paper, Issue 117051). University Library of Munich, Germany. https://doi.org/DOI:

Prananingtyas, P., Disemadi, H. S., & Zakiyah, N. (2020). The Indonesian business competition law: How the police plays a role? Jurnal Hukum Novelty, 11(1), 105. https://doi.org/10.26555/novelty.v11i1.a15224

Roza, D., & Parlindungan S, G. T. (2021). Teori positivisme Hans Kelsen mempengaruhi perkembangan hukum di Indonesia. Lex Jurnalica, 18(1), 20–26.

Salop, S. C., & Baker, J. B. (2015). Antitrust, competition policy, and inequality. Georgetown Law Journal, 104, 1–28. https://doi.org/10.2139/ssrn.2567767

Setiyawan, R., & Wicaksana Prakasa, S. U. (2021). Indonesian online shopping practices in the COVID-19 pandemic era: A study of culture and cyber security law. Jurnal Hukum Novelty, 12(1), 29–44. https://doi.org/10.26555/novelty. v12i01.a16944

Sfenrianto, S., Wijaya, T., & Wang, G. (2018). Assessing the buyer trust and satisfaction factors in the E-marketplace. Journal of Theoretical and Applied Electronic Commerce Research, 13(2), 43–57. https://doi.org/10.4067/S0718-18762018 000200105

Sudirman, L., & Disemadi, H. S. (2023a). Gig economy: Unleashing the potential of digital banking in Indonesia’s employment regulations. Lentera Hukum, 10(2), 302–330. https://doi.org/10.19184/ejlh.v10i2.39688

Sudirman, L., & Disemadi, H. S. (2023b). The role of Indonesian online marketplace in intellectual property rights infringements: A comparative analysis. Jurnal Pembaharuan Hukum, 10(1), 90–103. https://doi.org/10.26532/jph.v10i1. 30883

Sutrisno, S., Kuraesin, A. D., Siminto, S., Irawansyah, I., & Almaududi Ausat, A. M. (2023). The role of information technology in driving innovation and entrepreneurial business growth. Jurnal Minfo Polgan, 12(1), 586–597. https://doi.org/10.33395/jmp.v12i1.12463

Tambunan, T. (2018). Competition law and SMEs in Indonesia. In Competition Law, Regulation and SMEs in the Asia-Pacific (pp. 276–291). https://doi.org/ 10.1355/9789814695817-018

Tan, D. (2021). Metode penelitian hukum: Mengupas dan mengulas metodologi dalam menyelenggarakan penelitian hukum. NUSANTARA: Jurnal Ilmu Pengetahuan Sosial, 8(5), 2463–2478.

Taubman, A. S. (2021). Digital disruption and the reshaping of markets for IP: What this means for trade and competition policy. In Competition Policy and Intellectual Property in Today’s Global Economy (pp. 283–331). https://doi.org/10.1017/9781108157827.013

Utami, A. R., & Wulandari, E. (2021). Digital marketing training on social media and e-commerce in Mojo shoe business. ICCD, 3(1), 129–133. https://doi.org/ 10.33068/iccd.Vol3.Iss1.320

Warr, P. (2024, January). Thailand’s economy remains beset by low productivity and slow growth. East Asia Forum. https://eastasiaforum.org/2024/01/25/ thailands-economy-remains-beset-by-low-productivity-and-slow-growth/