The Indonesian anti-monopoly agency has ordered Google to pay an IDR202.5 billion (~RM55.2 million) fine for implementing unfair business practices. Specifically, the said practices revolve around Google Play Billing’s policy for the Indonesian app market.
According to the Commission for the Supervision of Business Competition of Indonesia (KPPU), Google Play’s policy dictates that developers can only utilise Google Play Billing (GPB) for their apps. The agency said that developers would risk having their apps removed from Google Play if they don’t comply with this policy.
In addition to that, Google also charges a service fee rate of between 15% to 30% on developers. KPPU said that the hefty service fee rate and restrictions on alternative payment methods have a significant impact on developers including having to increase the pricing of their apps and in-app products to cover the cost.
The price increase together with the lack of alternative payment options may turn some potential customers away from their apps. Ultimately, this may affect the revenue of developers according to KPPU.
Aside from the massive fine, Google also has to stop the mandatory implementation of GPB in Indonesia. KPPU has also instructed the company to reduce at least 5% of Google Play service fee for 1 year to all developers that implement the User Choice Billing system for their apps.
Google is going to appeal Indonesia’s ruling
Meanwhile, KPPU said that Google has 30 days to pay the IDR202.5 million fine. If the company fails to do so, it has to pay an additional 2% of the fine value per month.
In a statement to Reuters, Google said it is going to appeal the ruling. However, Google has to provide an IDR40.5 billion (~RM11 million) bank guarantee which is equivalent to 20% of the fine value, before it can go through the appeal process.
Google is not the only tech giant that has experienced the wrath of the Indonesian government as of late. Last year, Indonesia banned the sales of iPhone 16 after Apple did not meet the country’s long-standing rule whereby 40% of components within a smartphone have to be produced locally.
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