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Indonesia Fines Google US$12 Million for Unfair Business Practices

Indonesia's antitrust agency has taken a firm stance against tech giant Google, ordering the company to pay fines amounting to about 202 billion rupiah, equivalent to US$12.4 million. The penalties were imposed due to what the agency deemed as unfair business practices concerning Google's payment system services for the Google Play Store, its software distribution platform.


A large, illuminated Google logo in colorful letters on a wall in a modern office setting.
Credit: GOOGLE

The investigation into Alphabet Inc's Google was initiated in 2022 by the agency, suspecting the company of leveraging its dominant position by mandating Indonesian app developers to utilise Google Pay Billing at higher rates compared to other payment systems. Failure to comply would result in removal from the Google Play Store, a move seen as detrimental to developers' earnings and user base.


During a hearing, the panel highlighted that Google's actions not only impacted developers' revenues but also violated Indonesia's laws against monopolistic practices. The agency discovered that Google was charging fees of up to 30% through Google Pay Billing, further solidifying the allegations of unfair treatment.


With a staggering 93% market share in Indonesia, a country with a population of 280 million and a rapidly expanding digital economy, Google's dominance has raised concerns about competition and consumer choice. Despite repeated attempts to reach Google Indonesia for comment, the company remained silent outside of regular business hours.


In response to the allegations, Google had previously introduced an alternative billing option for developers, aiming to address some of the concerns raised by the antitrust agency. This move comes in the wake of Google facing substantial fines from the European Union totalling more than 8 billion euros over the past decade for anti-competitive behaviour related to various services.

 
  • Indonesia's antitrust agency fines Google $12 million for unfair business practices

  • Google accused of abusing dominant position by imposing higher rates on Indonesian app developers

  • Google's 93% market share in Indonesia raises concerns about competition


Source: REUTERS

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