Welcome Guest   |  Login   |   Signup
JG Logo
Fri, February 10, 2012
Archive Search

Carrefour Wins Appeal in South Jakarta District Court
Irvan Tisnabudi | February 17, 2010

The Indonesian unit of giant supermarket chain Carrefour has won its appeal by the Business Competition Supervisory Commission to sell its shares in PT Alfa Retailindo. (Bloomberg Photo) The Indonesian unit of giant supermarket chain Carrefour has won its appeal by the Business Competition Supervisory Commission to sell its shares in PT Alfa Retailindo. (Bloomberg Photo)
Share This Page
2
0
0
0
Share with google+ :


Post a comment
Please login to post comment

Comments

Be the first to write your opinion!

The Indonesian subsidiary of French supermarket chain Carrefour on Wednesday won its appeal in the South Jakarta District Court against an order by the country’s business-competition regulator to sell its stake in a local retailer.

Chief Judge Kusno said the panel of judges had accepted Carrefour Indonesia’s evidence that it did not have a local monopoly: a survey by AC Nielsen Media Research that determined that the company only had a 17 percent share of the market following its acquisition of PT Alfa Retailindo in 2008.

The Business Competition Supervisory Commission (KPPU) had claimed that the acquisition had increased Carrefour’s share of the domestic supermarket business from 45 percent to 68 percent, which it said gave the company monopoly-like control of the sector.

However, Kusno said the KPPU’s calculation of Carrefour’s market share was not accurate because it did not include smaller supermarkets and convenience stores that sell the same goods as supermarkets.

The KPPU has 14 days to decide whether it will appeal the decision to the Supreme Court.

In November, the KPPU ruled that Carrefour Indonesia was guilty of breaching the country’s anti-monopoly laws.

The KPPU claimed the company had come to dominate the wholesale supplier market and force unfair trading terms on its suppliers following its acquisition of a 75 percent stake in Alfa Retailindo for Rp 675 billion ($72.9 million).

The KPPU fined the company Rp 25 billion and ordered it to sell its stake in Alfa Retailindo within a year. But Wednesday’s decision by the court annulled the KPPU’s order, allowing Carrefour to retain Alfa Retailindo and absolving it from paying the fine.

KPPU communications director Ahmad Junaidi said the commission would study the decision before deciding.

Ignatius Andy, Carrefour’s legal counsel, applauded the judges’ decision.

“Carrefour’s competitors are many. The KPPU should have included the smaller supermarkets, not just the large supermarkets, when measuring market share,” he said. “We are ready if they want to file an appeal to the Supreme Court.”




  • 10:44pm | Concerned for Orangutans in In...
    When people have decent job they will be able to think about their environment. Unfortunately, being greedy often drive us not to care about preser
  • 10:34pm | Breaking News: Dozens Feared D...
    Probably the accident investigation will uncover: 1) bus driver was speeding, 2) bus driver was tired, and 3) bus was not maintained properly.
  • 9:55pm | Breaking News: Dozens Feared D...
    Agreed SBD...and many other routes. I am always scared going with a rental car with "the family", cruising along the mountain stretches,
  • 8:48pm | Breaking News: Dozens Feared D...
    It's amazing there are not a lot more accidents of this severity, given the crazed manner in which many bus drivers 'pilot' their vehicles on th
  • 7:40pm | Shocking Images Show Animal Cr...
    I can definitely tell you that in Islam we do not discriminate animals based on their habit or size. All animals should be loved and not unnecessar
  • 7:18pm | Malaysian Police Detain Saudi ...
    Is that something that interpol do ? Do they have to follow certain guideline on what can be classified as a crime ?
  • 7:13pm | Shocking Images Show Animal Cr...
    Sorry Bawel, my brother... What do you do with Eid Al Adha? Slice (or watch the slicing of) the throat of the goat and let i
  • 6:48pm | Malaysian Police Detain Saudi ...
    vanu - i suspect if the said deity existed he/she would not want his followers to kill people, and yet they do and he/she says nothing... draw your