ID :
53570
Fri, 04/03/2009 - 07:43
Auther :

CARREFOUR MAY BE FINED 25 BILLION RUPIAH

Jakarta, Apr 2 (ANTARA) - The French giant retail trade company Carrefour may be facing a fine of up to Rp 25 billion if proven to have been engaged in business monopoly and destructive competition against Indonesia's national retail trade industry of hypermarket and supermarket level.

"The fine ranged from Rp 1 billion to Rp 25 billion as part of a choice in sanction (article 48) if proven, which is however for the commission assembly to decide," communications director of the Business Competition Supervisory Commission (KPPU) A.Junaidi said in Jakarta Thursday.

KPPU had conducted two studies of Carrefour's market share in the upstream sector (with its suppliers) and in the downstream sector (with its rivals).

"Proof that we have found following the Alfa take-over, at upstream level Carrefour's market share increased from 44.75 percent to 66.73 percent, while at downstream level from 37.98 percent to 48.38 percent," Junaidi said.

He said that in the retail market at national hypermarket and superemarket level Carrefour had been suspected to have violated Article 17 para 1, and Article 25 para 1, point a.

"Article 17 on a ban on monopoly, such as controlling more than 50 percent of the market share of two kinds of goods or certain services, and Article 25 on misusing a dominating position which may cause a loss to the consumers and obstructed other business players to enter a similar market," he said.

KPPU has started conducting preliminary investigations since March 31, 2009, by forming a case investigation team. The prelimnary investigation will end on May 12, 2009. "But all these are still allegations, which need to be proven at a court of law," he said.

Besides an increase in Carrefour's market share, in the national retail trade business Carrefour's takeover of Alfamart also caused an inrease in the trading cost to be paid by the suppliers.



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