The Commission for the Supervision of Business Competition of Indonesia (KPPU) levied a hefty fine on Google for its restrictive policies on Google Play Billing, impacting app developers in the Indonesian market.
The Indonesia n anti-monopoly agency has ordered Google to pay an IDR202.5 billion (~RM55.2 million) fine for implementing unfair business practices in the Indonesia n app market. The Commission for the Supervision of Business Competition of Indonesia (KPPU) stated that Google Play's policy mandates developers to exclusively use Google Play Billing (GPB) for in-app purchases. Failure to comply with this policy could result in app developers facing delisting from Google Play.
Furthermore, Google charges a service fee rate ranging from 15% to 30% on developers utilizing GPB. KPPU asserts that this high service fee, coupled with restrictions on alternative payment methods, significantly impacts developers. These constraints force developers to increase app and in-app product prices to offset the costs, potentially deterring potential customers and ultimately affecting their revenue.In addition to the substantial fine, Google is required to cease the mandatory implementation of GPB in Indonesia. KPPU has directed the company to reduce its Google Play service fee by at least 5% for one year for all developers who implement the User Choice Billing system for their apps. KPPU has granted Google a 30-day period to settle the IDR202.5 billion fine. If payment is not received within the stipulated timeframe, Google will incur an additional 2% of the fine value each month. Google has indicated its intention to appeal the ruling but must provide an IDR40.5 billion (~RM11 million) bank guarantee, equivalent to 20% of the fine value, to initiate the appeal process. This recent action against Google is not an isolated incident. Last year, Apple also faced repercussions from the Indonesian government when it failed to comply with the country's longstanding rule requiring that 40% of a smartphone's components be manufactured locally
Google Anti-Monopoly Indonesia Unfair Business Practices Google Play Billing
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