11:49 AM EDT, 05/28/2024 (MT Newswires) -- (Updates with stock price movement in the headline, fourth paragraph)

Sea (SE) is under investigation by Indonesia's antitrust authorities for allegedly favoring its delivery service over others on its Shopee platform, the Indonesian agency KPPU said during an initial hearing Tuesday.

Shopee, Sea's e-commerce arm, uses an algorithm that prioritizes its delivery service, according to KPPU investigators, who also said that a director of Shopee International Indonesia has been appointed as a director at the delivery service company.

The Commission Council will hold the next hearing following Shopee's legal team response on June 11, KPPU said.

Shares of Sea were down more than 4% in recent trading.

Price: 68.53, Change: -3.45, Percent Change: -4.79