KOMPAS.com - French retailer Carrefour on Wednesday won an appeal against an antitrust ruling that had fined the company 2.7 million dollars and ordered it to sell an Indonesian subsidiary. Indonesia’s Business Competition Supervisory Commission (KPPU) in November ordered Carrefour Indonesia to sell its stake in Alfa Retailindo after it ruled it had breached competition rules by capturing more than half of the market.
But South Jakarta District Court judge Kusno ruled there was insufficient evidence that Carrefour had a monopolistic position. “We grant the appeal of Carrefour. Carrefour cannot be proven to have breached the KPPU’s rules on conducting monopolistic practices,” he told the court.
Carrefour lawyer Ignatius Andy said: “We feel blessed by the court’s decision. The judges have been very diligent”. “It was proven that Carrefour doesn’t conduct monopolistic practices, Carrefour doesn’t do abusive actions from a dominant position, and Carrefour doesn’t press the suppliers,” he added.
KPPU official Mohammad Reza said that the anti-trust body was “most likely” to appeal to the Supreme Court. “We believe that Carrefour controls about 58 percent of the modern retail market, which enables them to conduct monopolistic practices by pressing their suppliers,” Reza said.
Carrefour, the world’s second biggest retailer, bought Alfa in 2008 for 674 billion rupiah (72.7 million dollars). It has 45 stores across Indonesia while Alfa has 30.
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