KPPU suspects that Shopee's turnover has increased fivefold in two years due to monopolistic behavior in logistics services.
Shopee's legal team attended the hearing and will respond at a follow-up hearing on June 11.
Indonesia, with a population of about 280 million, is an important growth market for Sea and its competitors such as ByteDance's TikTok and Alibaba's Lazada.
If proven to be in violation, Shopee will face potential fines and may face changes in the way it presents delivery options to consumers.
A spokesperson for Shopee Indonesia said Shopee is "committed to complying with all applicable laws and regulations in Indonesia."
As part of the supporting evidence, the KPPU said that since 2018, a director of Shopee has also served as an executive in its express delivery service department.
"Based on this, PT Shopee International Indonesia engaged in discriminatory practices in selecting delivery service options that are automatically activated in bulk on the seller's dashboard," the antitrust agency said in a statement.
In addition, the agency is also investigating Lazada.
