Indonesia’s antitrust agency has fined Google 202 billion rupiah ($12.4 million) for alleged unfair practices tied to its Google Play Store payment system. The ruling marks a significant development in the global scrutiny of tech giants’ dominance in digital markets, particularly in fast-growing economies like Indonesia.
The investigation, launched in 2022, concluded that Google had abused its dominant position by pressuring local app developers to use its proprietary Google Play Billing system. Developers faced steep fees of up to 30% on transactions and risked having their apps removed from the Play Store if they didn’t comply. These practices, the panel found, not only reduced developers’ earnings but also limited their user base, violating Indonesia’s anti-monopoly laws.
With a staggering 93% market share in Indonesia’s app ecosystem, Google holds unparalleled sway over the country’s burgeoning digital economy. This dominance, however, has drawn sharp criticism, particularly as app developers look for more equitable revenue-sharing models.
In response to the fine, Google announced its intention to appeal, defending its practices as fostering a “healthy, competitive app ecosystem” while affirming its compliance with local laws. The company also pointed to recent changes allowing developers to explore alternative billing options.
This fine adds to Google’s growing list of global regulatory challenges. The tech giant has faced over $8 billion in fines from the European Union for anti-competitive practices and $825,000 in penalties from India’s Competition Commission in 2022 for abusing its Android licensing agreements.
Indonesia’s ruling signals increasing scrutiny of tech monopolies, particularly in rapidly expanding markets. As Google navigates its appeal, the decision may serve as a pivotal moment for developers advocating for fairer terms in one of Southeast Asia’s largest app economies.