Marketplace or Covert Monopoly? Criticizing Platform Dominance in the Digital Trading Ecosystem
DOI:
https://doi.org/10.31941/pj.v25i1.7915Keywords:
Digital platforms, Covert monopoly, Doctrinal legal research, Algorithmic governance, Indonesian trade lawAbstract
The rapid rise of digital trading platforms such as Tokopedia and Shopee in Indonesia has redefined market structures, raising urgent legal and regulatory questions. This study critically examines how these platforms construct covert dominance through algorithmic governance, reputational control, and non-negotiable contractual systems, often escaping the scrutiny of existing commercial and competition laws. Using doctrinal legal research, the study analyzes key Indonesian statutes, including KUHD, UU No. 5/1999, UU No. 7/2014, UU ITE, and UU No. 8/1999 and finds that current legal frameworks are doctrinally outdated and structurally inadequate in addressing platform-induced market asymmetries. Supported by Critical Legal Studies, Legal Realism, and theories of Platform Capitalism, the research reveals how law, while formally protective, often reinforces digital hierarchies and trader dependency in practice. Empirical insights from trader experiences further illuminate the legal opacity and symbolic nature of protections in platform economies. The study proposes critical reforms: redefining monopoly to include algorithmic dominance, expanding consumer protections to MSMEs, enforcing algorithmic transparency, and legally recognizing reputational systems. These recommendations aim to realign Indonesian commercial law with constitutional commitments to economic justice and fair digital trade.
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