Google has been fined Rp202.5 billion by the Indonesian Competition Commission (KPPU) after being found guilty of monopolistic practices. The fine comes as a result of Google forcing app developers to use its Google Play Billing System (GPB System), a move the KPPU deemed anti-competitive.
On January 21, 2025, the KPPU ruled that Google’s dominance in Indonesia’s app market, particularly for Android devices, led to unfair conditions for developers. By making developers use Google’s billing system, Google controlled payment methods and charged fees of up to 30%, limiting the options available to developers.
The commission found that Google Play Store holds more than 50% of the market share in Indonesia. By enforcing its billing system, Google restricted developers from offering alternative payment methods, which hurt competition and increased costs for developers.
In addition to the fine, the KPPU ordered Google to stop requiring developers to use its billing system. The company must also introduce a new initiative called User Choice Billing (UCB) that will allow developers to choose their own payment systems. As part of this, Google is required to lower service fees by at least 5% for the next year.
The ruling aims to level the playing field for smaller developers, who have faced high fees and penalties from Google. The decision signals that tech giants must not use their dominance to limit competition and opportunities in local markets.
Google has 30 days to pay the fine. If the company delays, it will face a monthly penalty of 2% of the fine amount. This decision could lead to significant changes in the way digital platforms operate in Indonesia and could benefit developers and consumers in the long run.
PHOTO: UZONE.ID
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