The Disruptive Innovation in Competition Law: Regulation Issues of on Line Transportation in Indonesia
Mukti Fajar ND1, Reni Budi Setianingrum2

1Mukti Fajar ND, Faculty of Law University, Muhammadiyah Yogyakarta.
2Reni Budi Setianingrum, Faculty of Law University, Muhammadiyah Yogyakarta.
Manuscript received on 07 February 2019 | Revised Manuscript received on 20 February 2019 | Manuscript Published on 04 March 2019 | PP: 306-311 | Volume-7 Issue-5S2 January 2019 | Retrieval Number: ES205401751/19©BEIESP
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Abstract: The rapid development of digital technology encourages businesses to innovate their products and services. But these business innovations often create an unexpected leap leading to disruptive innovation, for example, the growth of online transportation business. As a result, the existing regulation cannot reach this leap. This study aims to study: (1) the legal position of disruptive innovation in competition law; and (2) analyzing the status of application-based transportation in competition law. The method of this research is normative legal research, which examines various legal principles, legal theories, and legislation. Findings from this study are, first: disruptive innovation indeed creates chaos in business competition, but as long as it does not violate regulation about (1) activities that are prohibited; (2) agreements that are prohibited; and (3) abuse of dominant position and run fairly, obey the law and doesn’t inhibit the entry of competitors, it does not violate the competition law. Second, application-based transportation business raises new problems concerning with the regulation that must be applied. Though the business platform is completely different from conventional transport companies, this new business platform does not violate business competition law.
Keywords: Disruptive Innovation, Competition Law, Online Transportation.
Scope of the Article: Transportation Engineering