Indonesia’s antitrust agency, the KPPU, has imposed a fine of 202.5 billion Rupiahs (approximately $12.6 million) on Google for violating antitrust laws concerning its payment system for the Google Play Store. The fine, announced Wednesday, is the result of an investigation into the company’s market dominance and practices.
The KPPU’s ruling requires Google to cease its mandatory use of Google Play Billing for in-app purchases in the Google Play Store. In addition, the agency has directed Google to allow developers to participate in its User Choice Billing (UCB) program and to offer a minimum 5% service fee discount to developers for one year after the decision is finalized.
The investigation began in 2022, focusing on Google’s requirement for Indonesian developers to exclusively use the Google Play Billing (GPB) system, which charges fees of up to 30%—substantially higher than alternative payment systems. The KPPU found that Google’s restrictions on payment methods led to reduced user engagement, fewer transactions, and diminished revenue for developers.
The Google Play Store, which is pre-installed on all Android devices in Indonesia, dominates the local app marketplace with a market share of over 50%. In addition, Google holds a commanding 95.16% share of the search engine market in Indonesia, according to Statista data from January 2024.
Google has indicated plans to appeal the ruling. In a statement, Danielle Cohen, a Google spokesperson, expressed the company’s disagreement with the KPPU’s decision, asserting that its practices support a competitive and secure app ecosystem in Indonesia, offering developers choices, including User Choice Billing. Cohen also emphasized Google’s ongoing support for Indonesian developers through various initiatives.
This ruling comes amid increasing scrutiny of Google’s business practices in multiple countries, where the tech giant has faced fines for antitrust violations related to its market dominance. Legal challenges are ongoing in nations including India, South Korea, France, the European Union, and the U.S. Furthermore, Japan’s antitrust regulator is reportedly preparing to take similar action against Google for monopolistic practices.
