Google fined $12.4M by Indonesia over unfair business practices
What's the story
Indonesia's antitrust agency has slapped a fine of IDR 202 billion ($12.4 million) on Google for unfair business practices. The penalty stems from the tech giant's payment system for its software distribution platform, the Google Play Store. The allegations against Google were first investigated in 2022 amid suspicions of abuse of market dominance by the company.
Investigation
Payment system under scrutiny
The antitrust agency's investigation centered on Google's mandate for Indonesian app developers to utilize its own payment system, Google Play Billing. Reportedly, the system was mandated at higher commission rates than other payment methods, with the threat of being removed from the Google Play Store for non-compliance. During a hearing, it was found that these practices resulted in lower earnings for developers.
Legal violation
Google found guilty of violating anti-monopoly law
The panel said Google's practices violated Indonesia's anti-monopoly law. The tech giant was found to have charged a fee of up to 30% through its payment system, Google Play Billing. The finding comes amid Google's massive market dominance in Indonesia, where it holds a 93% share in the 280-million-strong country with a fast-growing digital economy.
Appeal
Google to appeal against ruling
In response to the fine, a Google spokesperson announced that the company plans to appeal the decision. The spokesperson defended Google's practices, stating they "foster a healthy, competitive Indonesian app ecosystem." They also emphasized Google's commitment to adhering with Indonesian law and noted that an alternative billing option had been introduced for developers.