Antitrust Law Analysis on the Abuse of Dominant Position in Franchise Agreements in Indonesia

Alexander Kennedy; Astea Novtalia Liuman; Natallia Lai; Stefanie Claudia Abdi Muljo

doi:10.55927/jlca.v4i1.13464

Authors

Alexander Kennedy Universitas Pelita Harapan
Astea Novtalia Liuman Universitas Pelita Harapan
Natallia Lai Universitas Pelita Harapan
Stefanie Claudia Abdi Muljo Universitas Pelita Harapan

DOI:

https://doi.org/10.55927/jlca.v4i1.13464

Keywords:

Antitrust, Dominant Position, Franchise, Fair Trade

Abstract

This study examines the abuse of dominant positions in franchise agreements in Indonesia, highlighting power imbalances between franchisors and franchisees and their impact on market fairness, competition, and franchisee autonomy. Employing a normative juridical methodology, the research analyzes legal frameworks, including Law No. 5 of 1999 on Monopolistic Practices, complemented by comparative studies of international practices. The findings reveal gaps in Indonesia's regulations, enforcement challenges, and significant power asymmetries in franchising, underscoring the need for a dedicated regulatory framework, enhanced institutional capacity, and stakeholder engagement. Recommendations include adopting a Franchise Disclosure Document, dispute resolution mechanisms, and fostering local franchise growth.

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