1Roby Pranata Christiawan, 2Ni Komang Arini Styawati, 3Putu Ayu Sriasih Wesna
1,2,3Warmadewa University & Terompong No.24, Sumerta Kelod, Denpasar, Bali 80239
DOI : https://doi.org/10.47191/ijmra/v8-i05-21Google Scholar Download Pdf
ABSTRACT:
The current frequent cases of monopoly are caused by market imbalances, which allow business actors to gain a dominant position. Many factors can cause monopolistic practices, one of which is the lack of supervision of existing regulations from the government. This study discusses the legal arrangements to deal with predatory pricing by business actors, which are based on Law No. 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition which regulates the interaction between business actors or companies in the market by considering the actions of a business actor or company in interacting which are driven by economic motives. Business actors or companies are prohibited from making an agreement by requiring buyers or customers to pay unequal prices for a similar product or service, this is regulated in Article 6. However, Article 7 also regulates the prohibition for entrepreneurs to make agreements with their competitors who determine market prices that are cheaper than the prices determined in the market which will later lead to unfair business competition. Efforts to prevent predatory pricing practices in the electric motorbike market in Denpasar show that this practice is still often found, both in online and offline businesses. Therefore, there is a need for more comprehensive regulations so that business actors can be supervised or monitored effectively by KPPU. Business actors are also prohibited from setting selling prices below the average for products currently sold.
KEYWORDS:Prevention, Predatory Pricing, Buying and Selling
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