Google LLC has been fined 202.5 billion Rupiahs (approximately $12.65 million) by Indonesia’s antitrust regulator, the KPPU, for engaging in monopolistic practices and abusing its top market position through its Google Play Billing System (GPB).
The decision, delivered on Tuesday, also mandates changes to Google’s operations within the country.
The KPPU concluded that Google’s policies unfairly restricted competition by requiring application developers to use the GPB System exclusively for digital product transactions in the Google Play Store.
Developers who failed to comply faced penalties, including the removal of their apps from the store. Google also charged developers service fees ranging from 15% to 30%, which the KPPU found to be excessive compared to other payment platforms.
The regulator’s investigation revealed that the mandatory use of GPB didn’t stop at restricting alternative payment methods, it also led to increased costs for developers and app users. These costs, in turn, caused a decline in app usage, reduced transactions, and limited revenue generation.
The KPPU further disclosed that the Google Play Store, pre-installed on all Android devices in Indonesia, dominates the market, holding more than 50% of the app distribution share. The regulator determined that this allowed Google to enforce restrictive policies that hindered competition and repressed technological development.
In addition to the fine, Google has been ordered to discontinue the mandatory use of the GPB System and to introduce the User Choice Billing (UCB) programme. Under this initiative, developers must be offered a service fee reduction of at least 5% for a year after the decision is legally binding.
Google has 30 days to pay the fine or face additional penalties, including a 2% monthly interest for late payment. If the company chooses to appeal, it must provide a bank guarantee for 20% of the fine’s value, as stipulated by Indonesian regulations.
Reacting to the ruling, a Google spokesperson, Danielle Cohen, stated: “We strongly disagree with the KPPU’s decision and will appeal. Our current practices foster a healthy, competitive Indonesian app ecosystem, offering a secure platform, global reach, and choice, including user choice billing — which enables alternatives to Google Play’s billing system.”
Cohen further noted Google’s contributions to Indonesia’s tech sector through programmes like the Indie Games Accelerator and Play Academy, adding, “We remain committed to complying with Indonesian law and will continue collaborating with the KPPU and stakeholders throughout the appeals process.”
This decision adds to several global regulatory challenges Google faces over its alleged anti-competitive behaviour.
Similar investigations are ongoing in Japan, with its regulator expected to issue a ruling soon, while past fines have been imposed in countries including India, South Korea, and France.
