Google Hit with Antitrust Fine in Indonesia
In a recent development, Indonesia’s antitrust agency, the KPPU, has fined Google a staggering 202.5 billion Rupiahs, translating to about $12.6 million. This penalty is linked to antitrust violations concerning Google’s payment system services within the Google Play Store.
Details of the Ruling
The KPPU’s ruling compels Google to discontinue the mandatory use of Google Play Billing for transactions within the Google Play Store. Furthermore, it mandates that Google should permit all developers to join the User Choice Billing (UCB) program and extend a minimum 5% service fee discount for a year following the finalization of this decision.
Background and Investigation
The investigation into Google’s practices began in 2022, focusing on its market dominance. Specifically, it was found that Google required Indonesian app developers to use its Google Play Billing (GPB) system, which charged fees as high as 30%, surpassing those of other payment systems.
“The limitation on payment options resulted in fewer app users, reduced transactions, and lower revenue,” stated the KPPU.
{KPPU Statement}
Market Impact
The Google Play Store is the sole app store pre-installed on all Android devices, boasting a market share of over 50%. Meanwhile, in the Indonesian search market, Google held a dominant 95.16% share as of January 2024.
Google’s Response
Disagreeing with the decision, Google has announced plans to appeal. A spokesperson, Danielle Cohen, emphasized their commitment to fostering a competitive app ecosystem in Indonesia. She highlighted initiatives like Indie Games Accelerator and Play Academy as examples of Google’s support for Indonesian developers.
“We strongly disagree with the KPPU’s decision and will appeal… We remain committed to complying with Indonesian law,” said Danielle Cohen.
{Danielle Cohen, Google Spokesperson}
Global Context
This case is part of a broader global scrutiny facing Google over alleged anti-competitive practices. Similar legal challenges have been seen in multiple countries including India, South Korea, France, the EU, and the US. Reports suggest that Japan may soon follow suit with its own antitrust findings against Google.
