Indonesia penalises Google for unfair Play with $12.4 million fine

Indonesia’s antitrust agency has slapped Google with a fine of around 202 billion rupiah ($12.4 million) for what it calls ‘unfair business practices’ tied to its payment system for the Google Play Store.

The case, which began in 2022, looked into allegations that Google abused its dominant position by pushing Indonesian app developers to utilise Google Play Billing. Developers faced higher fees than other payment systems and were threatened with removal of their apps from the Play Store if they did not comply.

During a hearing, the agency’s panel revealed that Google’s practices had negatively impacted developers by reducing their user base and cutting into their earnings. The panel also concluded that Google violated Indonesia’s anti-monopoly laws, citing the fees Google charges through Google Play Billing, which can be as high as 30% of sale price.

Google dominates Indonesia’s app market with a staggering 93% market share in a country of 280 million people, where the digital economy is rapidly expanding.

Not surprisingly, Google isn’t taking the ruling quietly. A spokesperson announced on Wednesday that the company plans to appeal, saying, “Our current practices foster a healthy, competitive Indonesian app ecosystem,” and reaffirmed its commitment to following local laws.

Google has also pointed out that it recently introduced a system allowing developers to offer alternative billing options.

A history of global fines

This isn’t Google’s first brush with hefty penalties. Over the years, the tech giant has faced a string of fines for anti-competitive behaviour worldwide.

In the European Union, the company has faced fines totalling over €8 billion ($8.3 billion) in the past decade. The penalties are the result of different practices, including difficulties around its price comparison services, the Android operating system, and advertising practices. Among the most significant was a $5 billion fine in 2018 by EU regulators, who accused Google of exploiting its dominance in online search to unfairly promote its services – a ruling the company continues to appeal.

Meanwhile, in India, the Competition Commission of India (CCI) imposed a fine of Rs 1,337.76 crore ($825,000) in October 2022, alleging that Google abused its Android operating system’s licensing agreements. According to the CCI, Google pressured smartphone manufacturers to pre-install its suite of apps around Google Play Services, limiting competition in areas like search, browsing, and video hosting. More recently, the CCI launched another enquiry into Google after Winzo Games accused the business of unfair practices in the listing of real-money gaming apps on the Play Store.

Google’s latest fine in Indonesia adds to its growing list of regulatory issues, as countries around the world take a closer look at the company’s dominance in the digital space. As the appeal process continues, all eyes will be on how this decision affects both developers and Indonesia’s booming app market.

(Image by Pixabay)

See also: Google’s quantum processor claims spark multiverse debate

Want to learn more about cybersecurity and the cloud from industry leaders? Check out Cyber Security & Cloud Expo taking place in Amsterdam, California, and London.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.