Business Actors Prohibited from Conspiring with Other Parties
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Ruling hearing of judicial review of Law on the Prohibition of Monopolistic Practices and Unfair Business Competition, Wednesday (20/9) in the Constitutional Court. Photo by Humas MK/Ganie.

The Constitutional Court (MK) granted partly the judicial review of Law No. 5/1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition, Wednesday (20/9). In the Decision Number 85/PUU-XIV/2016, the Court declared the phrase "other parties" in Articles 22 to 24 of Law No. 5/1999 to be interpreted as "parties related to other business actors."

Articles 22 to 24 of Law 5/1999 read:

Article 22

Business actors shall be prohibited from conspiring with other parties with the aim of determining the awardees of tenders which may cause unfair business competition.

Article 23

Business actors shall be prohibited from conspiring with other parties with the aim of obtaining information regarding the business activities of their competitors classified as company secret which may cause unfair business competition.

Article 24

Business actors shall be prohibited from conspiring with other parties in order to impede the production and or marketing of goods and or services of their competitors with the aim of causing the goods and or services offered or supplied in the relevant market to diminish, either in the quantity, quality or timeliness required.

According to the Court, those articles create legal uncertainty so they are contradictory to Article 28D paragraph (1) of the 1945 Constitution. In addition, according to the Court, Articles 22, 23, and 24 of Law No. 5/1999 must be interpreted in accordance with Article 1 number 8 of Law No. 5/1999 which reads, "Conspiracy or business conspiracy shall be a form of cooperation undertaken by one business actor with another with the intention of controlling the relevant market in the interest of the conspiring business actors." (ARS/lul/Yuniar Widiastuti)


Wednesday, September 20, 2017 | 18:15 WIB 91