KPPU Won the Tire Cartel Cessation in Supreme Court
(Jakarta - 6 June 2018) – The Commission for the Supervision of Business Competition (KPPU) received a report on notice of the Ruling of Supreme Court, Republic of Indonesia, Number 167-PK/Pdt.Sus-KPPU/2017 dated January 25, 2018 in a cessation case between PT Bridgestone Tire Indonesia and PT Sumi Rubber Indonesia, respectively as Cessation-I Petitioner and Cessation-II Petitioner against the Commission for the Supervision of Business Competition of the Republic of Indonesia (KPPU) as Cessation Respondent, on Friday, May 4, 2018. The contents of the aforementioned decision are as follows:
- Rejecting the aforementioned petition for cessation filed by Cessation I Petitioner: PT Bridgestone Tire Indonesia, and Cessation II Petitioner: PT Sumi Rubber Indonesia;
- Sentencing Cessation Petitioners I and II to pay for the case fees in the examination of the cessation stipulated amounting to IDR2,500,000.00 (two million five hundred thousand Rupiah).
On December 10, 2014, KPPU issued a decision to 6 (six) tire manufacturer, namely PT Bridgestone Tire Indonesia, PT Sumi Rubber Indonesia, PT Gajah Tunggal, Tbk., PT Goodyear Indonesia, Tbk., PT Elang Perdana Tyre Industry, and PT Industri Karet Deli to have legally and convincingly violated Articles 5 and 11 of Law Number 5 Year 1999 regarding Prohibition of Monopolistic Practices and Unfair Business Competition. The Panel of Commission has also imposed penalty on each of the Reported Parties amounting to IDR25 Billion (twenty-five billion Rupiah) that must be paid to the state treasury. Based on the aforementioned Decision KPPU No. 08/KPPU- I/2014, the Reported Parties have filed a remedy in the form of objection with the District Court.
At remedy level in the form of objection, the Central Jakarta District Court passed a decision on Case 70/Pdt.Sus-KPPU/2015/PN.Jkt.Pst on July 8, 2015 confirming the Decision of the KPPU and changed the amount of the penalty. Subsequently, at remedy level in the form of cessation, the Supreme Court passed a decision on Case Number 221 K/pdt.Sus-KPPU/2016 on June 14, 2015 confirming the aforementioned Decision of the District Court and rejecting the petition for cessation filed by the Petitioners, which means reconfirming the Decision of the KPPU.
Upon the rejection of the petition filed by the extraordinary remedy Petitioners through Cessation by the Supreme Court, Decision of the KPPU No. 08/KPPU- I/2014 regarding Alleged Violation of Article 5 paragraph (1) and Article 11 of Law Number 5 Year 1999 in Automotive Industry regarding the Four-Wheeled Motor Vehicle Tire Cartel has had a permanent legal force (inkracht).