French retailer Carrefour has rejected demands by Indonesia's Business Competition Supervisory Commission (KPPU) that it change its business practices in the country.
As part of an ongoing probe, the KPPU alleges Carrefour has engaged in monopolistic behaviour, reported the Jakarta Globe.
'From the start of the investigative process, we have rejected all of the KPPU's allegations, because according to our data, Carrefour has not taken a dominant market share in this country,' Carrefour lawyer Ignatius Andy said after a KPPU hearing.
After Carrefour's addition of Indonesian retailer Alfa Retailindo to its own stores last year, the KPPU said Carrefour holds over 60 per cent of the retail supply sector and 48 per cent of the consumer hypermarket sector.
'The 60 per cent plus `of suppliers` increased from below 40 per cent before the acquisition, and the 48 per cent `of retail customers` increased from 36 per cent,' said KPPU's investigative team leader Dedie Martadisastra.
Those figures would allow the retailer to lock up traditional supply channels, the Commission said.
Carrefour may also put pressure on suppliers to drop prices, thereby undercutting competitors.
The retailer denied the accusations, saying it was not taking a dominant market share.
The KPPU said it would pursue legal action if Carrefour did not change its practices within 60 days.
