THE REGULATION OF ONLINE TAXI FARES IN THE BUSINESS COMPETITION LAW PERSPECTIVE

Abstract

The presence of online-based taxi in Indonesia has caused the conventional taxi business actor
to have strong competitor. This competition will further encourage the regulation of public
transportation management to be immediately updated. Previously, the regulation of public
transportation for conventional taxi had been regulated in the Law Number 22 of 2009, but the
regulation was not compatible to apply to online taxi. Therefore, the government through the
Ministry of Transportation made the regulation for online taxi, namely Permenhub (The
Regulation of Transportation Ministry) Number PM 108 of 2017 concerning the
Implementation of People's Transportation with Public Motorized Vehicles which is not on the
Route. The purpose of this research is to analyze the regulation regarding the establishment of
online taxi fares. In addition, this research also reviews the indication of unfair business
competition related to online taxi fares. Based on the result of the analysis conducted, there
was no evidence of anticompetitive behavior in the taxi transportation market which was
conducted by online taxi business actor with the conventional taxi business actor. Online taxi
fare regulation was focused on the quality and service. Both conventional taxi and online taxi
did not depend on and influence each other. However, in the latest ministerial transportation
regulation was considered to be in conflict with the higher regulation, then the legal remedy
that could be carried out was judicial review.