Legal Protection for MSMEs in Partnership Agreements with Digital-Based Companies

Abstract

Digital transformation has changed the pattern of business relationships between micro, small, and medium enterprises (MSMEs) and digital platform providers. Digital-based partnership agreements provide opportunities for MSMEs to expand their markets, improve consumer access, and develop business activities. However, these relationships also raise legal issues, particularly related to imbalanced bargaining power, the use of standard clauses, unilateral changes to platform policies, transparency of service fees, account restrictions, and dispute resolution. This study aims to analyze the legal protection framework for MSMEs in partnership agreements with digital-based companies and identify the forms of protection needed to achieve contractual justice. The study uses a normative juridical method with a statutory and conceptual approach. Legal materials are analyzed qualitatively through systematic interpretation of provisions of contract law, MSME protection, electronic commerce, and business competition. The results of the study indicate that legal protection for MSMEs is already well-founded through general provisions of contract law, regulations concerning MSMEs, and electronic commerce regulations. However, this framework does not by itself guarantee contractual balance in addressing MSMEs' dependence on platform policies and management systems. This study concludes that effective protection needs to be achieved through agreement transparency, restrictions on potentially abusive clauses, prior notification of material changes to provisions, mechanisms for appealing account restrictions, and accessible dispute resolution. Strengthening legal literacy and oversight of digital partnership practices is also necessary to ensure that business digitalization is fair and sustainable