Indonesian anti-monopoly agency fines Google for unfair business practices related to its Google Play Billing system. Google must pay a fine and make changes to its billing policies in Indonesia.
The Indonesian anti-monopoly agency has ordered Google to pay an IDR202.5 billion (~RM55.2 million) fine for implementing unfair business practices. Specifically, these practices center around Google Play Billing’s policy for the Indonesian app market. According to the Commission for the Supervision of Business Competition of Indonesia (KPPU), Google Play’s policy mandates that developers can only utilize Google Play Billing (GPB) for their apps.
The agency stated that developers risk having their apps removed from Google Play if they fail to comply with this policy. Furthermore, Google charges a service fee rate ranging from 15% to 30% on developers. KPPU asserted that this substantial service fee rate and restrictions on alternative payment methods have a significant impact on developers, forcing them to increase the pricing of their apps and in-app products to cover the cost. This price increase, coupled with the lack of alternative payment options, may deter potential customers from their apps, ultimately affecting developers' revenue, according to KPPU.Aside from the substantial fine, Google must also cease the mandatory implementation of GPB in Indonesia. KPPU has instructed the company to reduce at least 5% of the Google Play service fee for one year to all developers who implement the User Choice Billing system for their apps. KPPU stated that Google has 30 days to pay the IDR202.5 million fine. If the company fails to do so, it must pay an additional 2% of the fine value per month. Google indicated its intention to appeal the ruling. However, before proceeding with the appeal process, Google must provide an IDR40.5 billion (~RM11 million) bank guarantee, equivalent to 20% of the fine value. Google is not the only tech giant to have faced the scrutiny of the Indonesian government recently. Last year, Apple faced penalties for not complying with the country’s longstanding rule requiring that 40% of components within a smartphone be produced locally
GOOGLE FINE INDONESIA APP BILLING COMPETITION
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