Indonesia – Indonesia’s antitrust agency has reportedly fined Google approximately 202 billion rupiah ($12.4 million) for engaging in unfair business practices concerning its payment system for the Google Play Store.
According to a Reuters report, the agency began investigating Alphabet Inc.’s Google in 2022 over allegations of abusing its dominant position by mandating Indonesian app developers to use Google Play Billing at higher rates than other payment systems, under the threat of removal from the Google Play Store.
The panel disclosed that the agency concluded Google had levied fees of up to 30% through its Google Play Billing system.
The panel further stated that Google’s practices reduced developers’ earnings by driving away users and concluded that the company violated Indonesia’s anti-monopoly laws. The agency also highlighted that Google holds a commanding 93% market share in the country of 280 million people.
A Google spokesperson stated that the company intends to appeal the ruling, emphasising its commitment to complying with Indonesian law.
“Our current practices foster a healthy, competitive Indonesian app ecosystem,” the spokesperson said, as quoted by Reuters.
Google previously stated that it had introduced a system allowing developers to offer users an alternative billing option. The company has also faced fines from the European Union for anti-competitive practices involving its price comparison service, Android mobile operating system, and advertising platform.
It is worth noting that Google encountered issues in Indonesia months earlier when sales of its Google Pixel phones were blocked. The company reportedly failed to comply with regulations requiring at least 40% of components in smartphones sold domestically to be locally manufactured.
