Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


Prevention of Monopolistic Practices and Unfair Business Competition through Business Competition Supervision

Author(s): Alum Simbolon

Intense business competition among business actors and corporations can lead to forms that harm the market itself, consumers and the state. This loss was initially caused by the dominance of one market actor through monopoly, or unhealthy business practices, aimed at undermining a competitor's equivalent business available in similar market. In Indonesia, business competition in the market is overseen by an individual institution, in order to prevent harmful behavior. This regulatory body, called the Business Competition Supervisory Commission, was established to oversee the implementation of the rules on the prohibition of monopolistic practices and unfair business competition. The role of the Commission in the enforcement of Business Competition Law indicates that it is in performing its duties and authority to examine and decide on business competition. The number of case decision from 2012 until 2016 were 80 decisions with various types of violations against the Law concerning Business Competition. Based on the results of research, it is seen from the amount of the payment amount of the fine to be paid by the business actors to the state varies, depending on the Commission's appraisal result for its magnitude and see the impact of the loss for the community. The Commission has a formula to calculate it, and then should impose maximum administrative sanction if it is proven that the business actor has committed a violation. This is to cause deterrent effect to the other business actors in order not to violate the regulation of business competition which has harmful impact to national economy. Since it large effect in regulating the market, the Commission is very beneficial for protecting the interests of the market actors, consumers, the state and guaranteeing equal business opportunity for all actors, and more broadly, protecting the national economy from harmful practices.

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