The Indonesian antitrust agency slapped Google with a fine of approximately 202 billion Rupiah ($ 12.4 million) for what it calls “unfair business practices” associated with the Google Play payment system.
The case, which began in 2022, dealt with the accusations that Google was abusing its dominant position by pushing Indonesian applications to use Google Play. Developers faced higher fees than other payment systems and threatened to remove their applications from the Play Store if it did not fulfill.
During hearing the agency panels revealed that Google’s procedures had a negative impact on developers by reducing their user base and disrupting their earnings. The panel also concluded that Google has vioiled Indonesian antitrust laws with the aim of Google Play fees via Google Play billing, which can be up to 30% of the selling price.
Google dominates the market with Indonesia applications with a stunning 93% market share in the country in the country of 280 million people where the digital economy is rapidly expanding.
No wonder Google doesn’t grind the government quietly. The spokesperson on Wednesday announced that the company is planning to appeal and said, “Our current practices support a healthy, competing Indonesian ecosystem of the application,” and reaffirmed his obligation to observe local laws.
Google also leaned that it recently introduced a system to offer developers to offer alternative billing options.
The history of global fines
This is not the first Google brush with stiff fines. Over the years, the technological giant of the belt faced a fine for anti-concurrent behavior around the world.
In the European Union, the company has faced fines over the last decade of more than EUR 8 billion ($ 8.3 billion). Sanctions are the result of various practices, including difficulties concerning their services for comparison of prices, Android operating system and advertising procedures. One of the most important was a fine of $ 5 billion in 2018 by EU regulators who accused Google of using their dominance in online search to unfairly promote their services – the decision that the company continues to recall.
Meanwhile, in India in October 2022, Indian Commission for Competition (CCI) imposed a fine of 1.337.76 R. According to CCI, Google has pushed on smartphone manufacturers to install a set of applications around Google Play services limiting competition in areas, Like searching, browsing and hosting video. More recently, CCI has started another query to Google after Winzo has accused the company of unfair practices in the list of real money in the Play Store.
Google’s latest fine in Indonesia contributes to a growing list of regulatory questions because the country surrounds the world closer to the dominance of the company in the digital space. As the appeal process continues, all eyes will concern how this decision affects both developers and the Indonesian application market.
(Pixabay picture)
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