carrefourIndonesia’s competition watchdog said Tuesday it had appealed against a court ruling that cleared French retailer Carrefour from having to sell its stake in a local subsidiary. The Business Competition Supervisory Commission (KPPU) in November ordered Carrefour Indonesia to sell its shares in Alfa Retailindo and fined it 2.7 million dollars, saying it breached competition rules by capturing more than half of the market.

The South Jakarta district court, however, revoked the ruling last month as it could not prove that Carrefour had conducted monopoly practices and had a dominant position in the market. “We’ve filed an appeal to the Supreme Court through the district court on Monday against its ruling,” KPPU official Mohammad Reza told AFP.

“We insist that Carrefour controls about 58 percent of the modern retail market. That enables them to conduct monopolistic practices by pressing their suppliers,” he said. Carrefour lawyer Ignatius Andy said it was still waiting an official letter from the court about the appeal.

“We’re ready if they want to appeal to the Supreme Court. The truth and evidence won’t change,” Andy said. Carrefour, the world’s second biggest retailer, bought Alfa in 2008 for 674 billion rupiah (72.7 million dollars). It has 47 stores across Indonesia while Alfa has 32.
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