[UPDATED] Predatory pricing: Putrajaya looking into Indonesia’s ban on TikTok sales

KUALA LUMPUR – Putrajaya will look into the move taken by the Indonesian government to ban e-commerce transactions on the social media platform TikTok before devising appropriate measures in the country, said Communications and Digital Minister Fahmi Fadzil.

Fahmi said he had received complaints from members of the public who expressed concern about the move, and at the same time, several large stores also raised issues related to price competition for products sold through the platform.

“Many Malaysians use the TikTok Shop platform to sell goods, so I will ask the Communications and Multimedia Commission (MCMC) and the ministry to look into the basis of the action taken by the Indonesian government.

“I think TikTok needs to come forward and give an explanation because one of the reasons why TikTok Shop is banned in Indonesia is because of the issue of predatory pricing, which is threatening local entrepreneurs in Indonesia,” he said.

He spoke to reporters at the “gotong-royong” (mutual help) programme at Kg Limau People’s Housing Project in Pantai Dalam here today.

In addition, Fahmi said TikTok should also provide an explanation on the issue of personal data protection which is a concern of the public when they shop on the platform.

“I think all social media (platforms) will study user behaviour, starting from what we like, what we share, what we buy and what we watch.

“So there are some issues that the KKD and MCMC need to look into, especially regarding the aspects of consumerism or personal data protection. 

“Therefore, I will call TikTok soon to discuss (the issues),” said the Lembah Pantai MP.

Fahmi said the discussion was important because the ministry also received complaints from media organisations regarding the use of social media that affected their operations.

“Many companies no longer spend on advertising through the (traditional) media but through the social media platforms, so it affects the media and I am very concerned about this issue,” he added.

On Monday, Indonesia’s Trade Minister Zulkifli Hasan said the ban aims to prevent the use of personal data in business interests and create a fair, healthy and beneficial electronic commerce ecosystem. – Bernama, October 7, 2023