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Indonesia Fines Google $12.4 mn For Unfair Business Practices

Indonesia's antitrust authority, KKPU, has fined Google's parent company, Alphabet Inc., around 202 billion rupiah ($12.4 million) for unfair business practices related to its payment system on the Google Play Store.

By Jitendra Das
New Update
Indonesia Fines Google $12.4 mn For Unfair Business Practices

Indonesia's antitrust authority, KKPU, has fined Google's parent company, Alphabet Inc., around 202 billion rupiah ($12.4 million) for unfair business practices related to its payment system on the Google Play Store.

The agency started investigating Alphabet Inc.'s Google in 2022, suspecting it was misusing its dominant position by forcing Indonesian app developers to use Google Pay Billing at higher rates than other payment methods or risk being removed from the Google Play Store.

The investigation found that Google forced Indonesian app developers to use its Google Play Billing system, which charged fees as high as 30%. The antitrust authority said this reduced developers' earnings and user base, violating Indonesia’s anti-monopoly laws.

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The agency also noted that Google controls 93% of Indonesia’s growing digital economy. The ruling accused Google of using its market power to harm local developers and limit competition in Indonesia.

A Google spokesperson said that the company plans to appeal the decision, claiming its practices help create a competitive app ecosystem in Indonesia. Google also stressed its commitment to following local laws, mentioning the recent introduction of an alternative billing option for developers.

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