Following up on the government’s move to confirm the cap on administrative fines for competition law violations, the KPPU has issued an implementing technical regulation on administrative fines. While this regulation (KPPU Regulation No. 2 of 2021 on the Guidelines for Imposing Administrative Fines) was enacted, and became effective, on 31 May 2021, it only recently became available to the public.
As discussed in our previous update on this topic (click here to read), the new administrative fine cap is tied to either 50% of the relevant company’s net profit or 10% of its turnover. The new regulation contains more detailed provisions on the calculation and payment mechanism, including payment by way of instalment. The regulation also emphasises the requirement for the reported party to deposit a bank guarantee when filing an appeal against the KPPU decisions.
For more information, click here to read the full Legal Update.
