Google faces a $12.4M fine in Indonesia for anti-competitive practices in its Google Play Store.
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| A $12.4M fine for Google in Indonesia highlights unfair payment system practices. Image/ Illustration: ChicHue |
Jakarta, Indonesia — January 22, 2025:
Indonesia’s antitrust agency has imposed a fine of 202 billion rupiah ($12.4 million) on Google for engaging in unfair business practices involving its Google Play Store payment system.
The agency’s investigation, launched in 2022, concluded that Google had exploited its dominant market position by forcing Indonesian app developers to use Google Play Billing. Developers who refused faced the threat of removal from the platform. The mandatory system, which charges fees as high as 30%, was found to suppress competition and reduce developers’ earnings by limiting user access to their apps.
With a 93% market share in Indonesia’s fast-expanding digital economy, Google wields significant influence in a country of 280 million people. The panel determined that its practices violated Indonesia’s anti-monopoly laws and harmed the competitive landscape for app developers.
A Google spokesperson announced plans to appeal the decision, defending the company's payment system as fostering a healthy and competitive ecosystem for developers. They also highlighted Google’s commitment to adhering to Indonesian regulations and noted the recent introduction of an alternative billing option for app developers.
This ruling adds to Google’s mounting antitrust troubles worldwide. Over the past decade, the company has faced fines exceeding €8 billion ($8.3 billion) from the European Union for monopolistic practices in areas including price comparison services, the Android operating system, and digital advertising.