Indonesia’s antitrust agency has imposed a fine of around 202 billion rupiah (approximately $12.4 million) on Google for unfair business practices.
This decision comes after an investigation into the tech giant’s practices, which allegedly harmed Indonesian app developers.
The company reportedly forced Indonesian developers to use its Google Play Billing system, charging higher fees than other payment options.
In a significant move, Indonesia’s antitrust agency has imposed a fine of around 202 billion rupiah (approximately $12.4 million) on Google for unfair business practices linked to its payment system services on the Google Play Store. This decision comes after an investigation into the tech giant’s practices, which allegedly harmed Indonesian app developers.
The investigation, which began in 2022, accused Google of abusing its dominant position in the market. The company reportedly forced Indonesian developers to use its Google Play Billing system, charging higher fees than other payment options. If developers didn’t comply, they risked having their apps removed from the Google Play Store. This practice, the agency claims, unfairly reduced developers’ earnings and limited their user base.
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According to the antitrust panel, Google’s payment system took up to 30 percent from developers. The agency found that this violated Indonesia’s laws against monopolistic behaviour, reports Reuters. Google, which controls a massive 93 percent market share in Indonesia, has been accused of using its dominant position to stifle competition in the country’s rapidly growing digital economy.
A spokesperson for Google responded to the ruling, saying the company would appeal the decision. “Our current practices foster a healthy, competitive Indonesian app ecosystem,” the spokesperson stated. They also emphasised that Google is committed to complying with Indonesian law.
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The tech giant previously introduced a system that allows developers to offer users alternative billing options.
This isn’t the first time Google has faced legal challenges over its business practices. In the past decade, the European Union has fined Google more than 8 billion euros ($8.3 billion) for anti-competitive behaviour related to its price comparison service, Android operating system and advertising services.
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Ayushi Jain
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