Dian Kuswandini, The Jakarta Post, Jakarta | Fri, 06/20/2008 10:33 AM | Headlines
Consumers suffering losses from the cartel-like price fixing of text message services (SMS) can file for compensation at state courts, the Business Competition Supervisory Commission (KPPU) says.
"Our findings on the high SMS rates is really an alarm for the public, signaling that people have paid too much for SMS for almost four years. Now that they know the truth, they could just file for compensation at a state court," KPPU member Dedie S. Martadisastra told The Jakarta Post on Thursday.
Earlier on Wednesday the KPPU announced it had found six mobile communications operators guilty for conspiring to fix SMS rates from early 2004 until April this year, causing consumers to suffer Rp 2.8 trillion (US$4.3 billion) in losses.
The operators are Excelcomindo Pratama (XL), Telekomunikasi Seluler (Telkomsel), Telekomunikasi Indonesia (Telkom), Bakrie Telecom, Mobile-8 Telecom and Smart Telecom.
The KPPU argued that SMS rates imposed by the operators were artificially high. Based on its own calculation, charges should be not higher than Rp 114 for a message of 160 characters.
Dedie added that a class action suit against the guilty operators was also an option that could be taken by the public to claim for the losses.
Another member Mohammad Iqbal said, "During our preliminary investigations of this case, we informed the public about the potential losses caused by the price fixing and asked them to report to us if the practice had harmed them".
"The KPPU could have asked them to pay compensation in its verdict yesterday. However, no one reported to us of feeling harmed by the price fixing."
Responding to the class action option, the Indonesian Consumer Foundation (YLKI) said it was ready to accommodate the idea.
"We are ready, as long as the public is right behind us," YLKI member Indah Suksmaningsih said.
However, "Class action would be a long, winding road and too costly. It would be hard to organize, and we doubt consumers would want to spend their time going to court," she added.
The best thing to consider, Indah said, "is to make sure the fines imposed to the operators will be used to benefit the public. And this is the government's responsibility."
According to Indah, the government, as a regulator, is also responsible for letting consumers suffer from the price fixing.
"What can consumers do? It just reminds us that Indonesian consumers are forgiving, forgetful and defenseless."
Telkomsel lawyer Ignatius Andy said wrongdoing had yet to be proven and that his company would apply for an appeal against the KPPU ruling.
He said customers would suffer losses if they were forced to use Telkomsel services and pay a price they didn't agree on.
"Telkomsel is not the only player. Customers have the freedom to choose to use services from other operators. There was no coercion, so there was no such damage to our customers," Andy said.
Consumers suffering losses from the cartel-like price fixing of text message services (SMS) can file for compensation at state courts, the Business Competition Supervisory Commission (KPPU) says.
"Our findings on the high SMS rates is really an alarm for the public, signaling that people have paid too much for SMS for almost four years. Now that they know the truth, they could just file for compensation at a state court," KPPU member Dedie S. Martadisastra told The Jakarta Post on Thursday.
Earlier on Wednesday the KPPU announced it had found six mobile communications operators guilty for conspiring to fix SMS rates from early 2004 until April this year, causing consumers to suffer Rp 2.8 trillion (US$4.3 billion) in losses.
The operators are Excelcomindo Pratama (XL), Telekomunikasi Seluler (Telkomsel), Telekomunikasi Indonesia (Telkom), Bakrie Telecom, Mobile-8 Telecom and Smart Telecom.
The KPPU argued that SMS rates imposed by the operators were artificially high. Based on its own calculation, charges should be not higher than Rp 114 for a message of 160 characters.
Dedie added that a class action suit against the guilty operators was also an option that could be taken by the public to claim for the losses.
Another member Mohammad Iqbal said, "During our preliminary investigations of this case, we informed the public about the potential losses caused by the price fixing and asked them to report to us if the practice had harmed them".
"The KPPU could have asked them to pay compensation in its verdict yesterday. However, no one reported to us of feeling harmed by the price fixing."
Responding to the class action option, the Indonesian Consumer Foundation (YLKI) said it was ready to accommodate the idea.
"We are ready, as long as the public is right behind us," YLKI member Indah Suksmaningsih said.
However, "Class action would be a long, winding road and too costly. It would be hard to organize, and we doubt consumers would want to spend their time going to court," she added.
The best thing to consider, Indah said, "is to make sure the fines imposed to the operators will be used to benefit the public. And this is the government's responsibility."
According to Indah, the government, as a regulator, is also responsible for letting consumers suffer from the price fixing.
"What can consumers do? It just reminds us that Indonesian consumers are forgiving, forgetful and defenseless."
Telkomsel lawyer Ignatius Andy said wrongdoing had yet to be proven and that his company would apply for an appeal against the KPPU ruling.
He said customers would suffer losses if they were forced to use Telkomsel services and pay a price they didn't agree on.
"Telkomsel is not the only player. Customers have the freedom to choose to use services from other operators. There was no coercion, so there was no such damage to our customers," Andy said.