Google was fined $12.6 million in Indonesia for monopolistic practices in the payment system

Google has been subjected to monopoly violations again, this time by an Asian country. Google was fined $12.6 million by Indonesia’s antitrust agency KPPU. The allegation relates to Google Play Store payment system services.

Committee plateheaded by Hillman Bojana and consisting of Mohammad Reza and Eugenia Mardanograha, announced the decision on January 21, 2025. As a result of the violation, Google was ordered to stop the mandatory use of Google Play Billing (GPB) in the Google Play Store. .

Google is fined $12.6 million in Indonesia due to monopolistic practices in the payment system https://t.co/9ebY97UnUk pic.twitter.com/iEreQQSG5t

– Livio Andrea Acerbo (@AcerboLivio) January 22, 2025

The Commission also directed Google LLC to announce opportunities for all app developers to participate in the User Choice Billing (UCB) program. This will be achieved by offering incentives in the form of reductions in service fees of at least 5% for a period of one year, starting with the legally binding nature of this decision.

After the decision becomes final, fines must be paid within 30 days. However, if Google fails to pay the fine in a timely manner, the Commission will also require Google to pay a late penalty of 2% per month of the value of the fine.

Investigation – details

The antitrust watchdog launched an investigation into Google over its market dominance in 2022. It found that the company forced Indonesian app developers to use GPB for in-app purchases. In addition, the agency found that the GPB system imposed fees of up to 30%, which were higher than those charged by other payment systems.

Apparently, Google requires that all digital products and services purchased from the Google Play Store be processed through the GPB system. Why is it a problem? It restricts alternative payment methods for GPB. Hence the monopoly.

According to the agency, restricting payment options resulted in a decline in the number of app users, transactions and revenue. This means that, to some extent, it also affects Google.

Google has also created a policy for removing apps from the Google Play Store. Users who do not adhere to these duties will also have their app updates suspended.

Moreover, the challenges that app developers face when customizing the UI and user experience further complicate keeping their apps competitive in the market.

Google Play Store is the only app store pre-installed on all Android devices, and its market share exceeds 50%.

according to StatistaGoogle dominated the Indonesian search engine market with a 95.16% market share, while Bing, Yahoo, DuckDuckGo, and Yandex made up the remaining search engines.

Google response

Danielle Cohen, a Google spokeswoman, said in an email statement: “We strongly disagree with the KPPU’s decision and will appeal it. Our current practices foster a healthy and competitive ecosystem for Indonesian apps, providing a secure platform, global reach and choices, including user choice billing – which enables alternatives to the Google Play billing system.

She added: “Outside our platform, we actively support Indonesian developers through a comprehensive range of initiatives, including the Indie Games Accelerator, Play Academy and Play x Unity, reflecting our deep investment in their success. We remain committed to complying with Indonesian law and will continue to collaborate with KPPU and stakeholders throughout the process.” Appeal.

In the event of appeal, Indonesian law requires Google provides a bank guarantee of 20% of the value of the fine

Google has been fined for anti-competitive practices due to its abuse of dominant market power in several countries. In fact, the United States found Google To violate antitrust law by illegally maintaining an Internet search monopoly.

In addition, India, South Korea, France, and the European Union have also faced problems with Google.

Notably, according to Nikkei Asia, Japan’s antitrust watchdog is expected to conclude that Google has violated Japan’s antitrust laws. It will require the tech giant to stop its monopolistic practices.

In the event of an objection to the KPPU decision, Google LLC is obligated to provide a bank guarantee in the amount of 20% of the value of the fine.

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