The Implementation of the Term Affiliated Shares between Companies in Merger Control by the Indonesian Business Competition Authority

Abstract

The definition of affiliated companies in controlling mergers according to competition law based on Article 7 GR No. 57/2010 is an exception to the obligation of business actors to report their corporate actions to KPPU. The application of the term affiliated has several times led to differences of opinion leading to the imposition of sanctions in the form of late penalty for reporting mergers. It is necessary to deepen the definition and criteria for affiliated shares between companies in the shares acquisition according to Article 7 of GR 57/2010. This research is normative research that uses secondary data in the form of regulations by both the government and the KPPU. This study concludes that affiliated company shares are a controlling relationship that occurs due to share ownership of more than 50% or less than 50% but can determine the company's managing business entities. Whereas business entity policy makers are parties involved in determining the company's financial statements and business plans. A clear definition of the term company policy maker is needed, given the increasingly broad dynamics of determining business policies.