Violation of Law No. 5/1999 Concerning Prohibition of Monopolistic Practice and Unfair Business Competition (Law No.5/1999). ABUSE OF DOMINANCE IN DISTRIBUTION OF DRY CELL BATTERY “ Competitor Exclusion Program ” Verry Iskandar M. Hadi Susanto Commission for the Supervision of
ABUSE OF DOMINANCE IN DISTRIBUTION OF DRY CELL BATTERY
“Competitor Exclusion Program”
M. Hadi Susanto
Commission for the Supervision of
Business Competition (KPPU)
Republic of Indonesia
The main business of the reported business actor are distributing many kinds of food and non food, including distributing for battery “ABC”which is produced by “PT International Chemical Industrial” and “PT Hari Terang Industrial”.
MAIN MANGANESE BATTERY LINE UP
Relevant Product Market
Manganese UM-3 or R6 biru Battery or AA Blue or battery product having function, quality, and equal price
Extra Heavy Duty
Relevant Geographical Market
JAVA & BALI
June 2002 – May 2003
Term and condition of Competitor Exclusion Program as follows:
Even the evidence of documents consist only of 5 documentof contracts of Competitor Exclusion Program and 2 (two) documentsof receipt of Bonus “Competitor Exclusion Program and Not to Sale any Products of Competitor”, but those documents are supported by explanation of witnesses (under oath), which stated that PT ABC was committed Competitor Exclusion Program.
ABC was proven validly and convincingly violating Monopolistic Practice and Unfair Business Competition (Law No.5/1999)Article15 sub-section (3) letter b, Article 19 letter a, and Article 25 sub-section (1) letter a and Sub-section (2) letter a Law Number 5 of 1999.
Related to the violence, the Commission order ABC to stop “Competitor Exclusion Program” (Program Geser Kompetitor, PGK/CEP) developed by ABC with grocery and semi-grocery shops and instructed ABC to halt and not re-developing promotion activity such as PGK/CEP or sort of activities.Conclusion