Indonesia’s competition authority has fined Google approximately 202 billion rupiah ($12.4 million) for engaging in what it deems as unfair business practices related to its payment system for the Google Play Store.
The investigation, initiated in 2022, focused on allegations that Google misused its dominant position by pressuring Indonesian app developers to use Google Play Billing. These developers were subjected to higher fees compared to other payment platforms and faced the threat of app removal from the Play Store if they did not comply.
During the hearing, the panel of the authority revealed that Google’s actions had a negative impact on developers by reducing their user base and cutting into their profits. The panel determined that Google had violated Indonesia’s anti-monopoly laws by highlighting the fees charged through Google Play Billing, which can reach up to 30% of the sale price.
Google holds a significant 93% share of Indonesia’s app market in a country with a population of 280 million, where the digital economy is rapidly expanding.
Unsurprisingly, Google has expressed its intention to appeal the decision. A spokesperson stated that the company believes its current practices support a competitive Indonesian app ecosystem and reiterated its commitment to complying with local regulations.
Google also noted that it recently introduced a feature allowing developers to offer alternative billing options.
A track record of global fines
This is not the first time Google has faced substantial fines. Over the years, the tech giant has been fined for anti-competitive behavior in various countries around the world.
In the European Union, Google has incurred fines totaling over €8 billion ($8.3 billion) in the past decade. The penalties stem from different practices, such as issues with its price comparison services, the Android operating system, and advertising practices. One of the most significant fines was a $5 billion penalty in 2018 by EU regulators, who accused Google of leveraging its dominance in online search to unfairly promote its services – a decision that Google is still appealing.
In India, the Competition Commission of India (CCI) imposed a fine of Rs 1,337.76 crore ($825,000) in October 2022, alleging that Google exploited its Android operating system’s licensing agreements. The CCI claimed that Google coerced smartphone manufacturers to pre-install its suite of apps through Google Play Services, stifling competition in areas like search, browsing, and video hosting. Recently, the CCI initiated another investigation into Google following allegations by Winzo Games of unfair practices in the listing of real-money gaming apps on the Play Store.
Google’s latest fine in Indonesia adds to its growing list of regulatory challenges as countries worldwide scrutinize the company’s dominance in the digital realm. As the appeal process unfolds, all eyes will be on how this ruling impacts developers and Indonesia’s thriving app market.
(Image by Pixabay)
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