Regulating algorithms in the digital market: a revisit of Indonesian competition law and policy

ABSTRACT

Although the use of algorithms has become increasingly prominent in the digital market, such algorithms are often opaque and prone to risks of making biased decisions. Algorithms could also be used to harm competition, such as by facilitating cartels. Such developments make it necessary to examine the readiness of existing competition law to tackle cases involving algorithms. This paper focuses on analysing Indonesian competition law to address the following issues: (1) how current Indonesian competition law deals with algorithms-related cases; (2) which indicators could detect anti-competitive algorithms; and (3) which competition policy approach could be considered in Indonesia to tackle the problem resulted from the use of algorithms.

KEYWORDS:

• Algorithms
• competition law
• competition policy
• digital market
• Indonesia

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 According to Article 3, para. (2) of the Government Merger Regulation, for the post-merger assessment, the ICC carries out analyses on the following elements: (1) Market concentration; (2) entry barriers; (3) potential anti-competitive conducts; (4) effect on efficiency; and (5) bankruptcy. Furthermore, under Article 13, para. (5) of the ICC Merger Guidelines, under certain circumstances, the ICC also carries out analyses on the following: (1) Policy for improving competitiveness and empowering national industries; (2) innovation and technology development; (3) protection for micro-, small-, and medium-sized companies; (4) effect on employment; and (5) application of existing laws.