Indonesia’s antitrust agency has fined Google 202 billion rupiah (approximately $12.4 million) for engaging in unfair business practices related to its payment system for the Google Play Store. The fine follows an investigation into Google’s dominance in the country’s app market.
The investigation, launched in 2022, focused on allegations that Google had forced Indonesian app developers to use Google Play Billing, its own payment system, at higher fees than other available methods. Developers who refused to comply risked having their apps removed from the Play Store.
According to the Indonesian panel, the system led to reduced earnings for developers and fewer users, ultimately violating the country’s laws against monopolistic behavior. The agency also revealed that Google charged developers a commission of up to 30% through its billing system.
Google holds a dominant 93% market share in Indonesia, a country of 280 million people with a rapidly growing digital economy. The antitrust agency ruled that Google’s actions harmed competition in the market.
A spokesperson for Google stated on Wednesday that the company would appeal the ruling. “Our current practices foster a healthy, competitive Indonesian app ecosystem,” the spokesperson said, adding that Google was committed to adhering to Indonesian law. Google also pointed out that it had introduced a system allowing developers to offer users alternative payment methods.
This fine is part of a broader trend of legal challenges for Google. The company has previously faced more than 8 billion euros ($8.3 billion) in fines from the European Union for similar anti-competitive practices in areas such as its price comparison service, Android mobile system, and advertising services.
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