Sea's stock dropped 8% pre-market as Indonesia's antitrust agency investigates the company for possibly privileging its delivery service.
At a hearing on Tuesday, Indonesia's antitrust body, referred to as KPPU, reported that Shopee, the e-commerce branch of Sea, had implemented an algorithm that automatically favored its delivery service over others, even against local competitors, for online buyers in Indonesia. The legal representatives of Shopee, who were in attendance, are set to provide their response at a subsequent hearing scheduled for June 11.
Shopee is “committed to complying with all applicable regulations and legislation in the Republic of Indonesia,” a Shopee Indonesia spokesperson said.