Anti Monopoly And Oligopoly Monopoly In Indonesia
Understanding Monopolistic Practices and unfair business competition according to Law No. 5 of 1999 concerning Monopoly Practices is the concentration of economic power by one or more business actors resulting in the control of production and or marketing of certain goods and or services resulting in unfair business competition and may harm the general interests. Anti-monopoly Law No. 5 of 1999 gives the monopolist meaning as a control over the production and or marketing of goods and or on the use of certain services by one business actor or group of business actors (Article 1 paragraph (1) of Anti-Monopoly Law. While the meaning of “monopolistic practice” is a concentration of economic power by one or more actors that result in the control of production and or marketing of certain goods and or services that lead to an unhealthy business competition and can harm the public interest in accordance with Article 1 paragraph (2) Anti-Monopoly Law.
Principles and Objectives of Antimonopoly and Business Competition
Business actors in Indonesia in running their business activities based on economic democracy by considering the balance between the interests of business actors and the public interest. The law (Act) on business competition is Law no. 5 of 1999 concerning Prohibition of Monopolistic Practices and Unfair Business Competition (Law No. 5 / 1999) aimed at maintaining a competitive market from the influence of agreements and conspiracies that tend to reduce and / or eliminate competition. The main concern of the competition law is promoting competition and strengthening consumer sovereignty.
Activities prohibited in antimonopoly
Activities prohibited from dominant position according to article 33 paragraph 2 are: The dominant position is the circumstance in which the business actor does not have a significant competitor in the relevant market in relation to the controlled market share, or the business actor has the highest position among its competitors in the relevant market in terms of financial capacity, the ability to access on the supply or sale, and the ability to adjust the supply or demand of a particular good or service. According to article 33, paragraph 2, “Production branches that are important to the state and control the livelihood of the people are controlled by the state. ” Thus, economic sectors such as water, electricity, telecommunications, natural resources controlled by the state shall not be fully controlled by the private sector.
Agreement prohibited in Antimonopoly and Business Competition
Compared with Article 1313 of the Civil Code, Law No. 5 / 199 specifies the business actor as the legal subject, in the law, the agreement is defined as an act of one or more business actors to bind themselves to one or more other business actors by any name, whether written or unwritten. This however still creates confusion. Agreement with “understanding” whether it can be referred to as agreement. This agreement, more commonly referred to as the tacit agreement, has been accepted by the Anti-Monopoly Law in some countries, but in its implementation in Law No. 5/1999, it has not been able to accept the “agreement in the presumption”. The treaty prohibited under Law No. 5 / 1999 is an agreement in the form of the following: Oligopoly Pricing Division of territory Boycott Cartel Trust Oligopsoni Vertical integration Closed deal Agreement with foreign parties.
Agreement prohibited merging, fusion, and takeover
Merger is a legal act committed by a Company or Business Entity or more to merge with another Company / Business Entity that has resulted in assets and liabilities of the Company / Business Entity incorporating the transfer due to law to the Company / Business Entity receiving the Merger and subsequently the Company / Business entities that merge ends due to law. Consolidation is a legal act committed by a Company or Business Entity or more to merge by establishing a new Company / Business Entity that is due to acquire assets and liabilities from the Company / Business Entity that merges and the Company / Business Entity that merges ends because of the law. Acquisition is a legal act committed by a business actor to obtain or obtain either all or part of the shares and / or assets of the Company / Business Entity, which may result in the transfer of control over the Company / Business Entity.
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