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W&P Newsletter – Client Alert Revocation of Antitrust Law Enforcement Relaxation Policy

Two years after the Commission for the Supervision of Business Competition (Komisi Pengawas Persaingan Usaha – “KPPU”) issued KPPU Regulation No. 3 of 2020 on the Relaxation of Law Enforcement of Monopolistic Practices and Unfair Business Competition as well as Supervision of the Implementation of Partnerships in the Context of Supporting the National Economic Recovery Program (“KPPU Reg. 3/2020”), the KPPU finally decided to revoke the relaxations previously given under KPPU Reg. 3/2020 now that the situation is generally improving and businesses have been adapting to the new normal.

To that end, the KPPU issued KPPU Regulation No. 2 of 2022, essentially stipulating that with effect from 1 May 2022, the following relaxations given under KPPU Reg. 3/2020 are no longer applicable:

  • relaxation of the enforcement over activities involving the use of a Dominant Position aimed to handle the COVID-19 outbreak and/or support the economic capacity of business actors in running their businesses; and
  • extension of the deadline for merger notification submission to the KPPU, from initially 30 Business Days to 60 Business Days after the merger.

The above relaxations proved to be a great boon to many clients, especially in respect of their offshore merger notifications to the KPPU, for they faced various challenges during the pandemic such as movement limitations during the strict PPKM (limited lockdown) and work-from-home policies. However, it is critical that starting 1 May 2022, business actors scrupulously comply with the applicable antitrust law requirements, particularly the deadline for the merger notification submission to the KPPU to avoid potential issues and sanctions.

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