Google fined $12.4 million by Indonesia for violating competition law

On January 21, Indonesia's antitrust agency announced a fine of $12.4 million to Google for violations related to the payment system on the Google Play Store app store.

The agency has been investigating Alphabet - Google's parent company since 2022, on suspicion that the company abused its dominant position, requiring app developers in Indonesia to use Google Play Billing at a higher fee than other payment systems, or face removal from the Google Play Store.

Google tính phí lên đến 30% với các nhà phát triển ứng dụng trên Google Play Store.

Google charges up to 30% to app developers on the Google Play Store.

The system reduced developers’ income because it led to a drop in users, the board said in a hearing. Google violated Indonesia’s antitrust laws, the agency concluded.

Specifically, authorities discovered that Google charged up to 30% through Google Play Billing.

The agency also said that Google currently controls 93% of the market share in the country of 280 million people, where the digital economy is growing rapidly.

A Google spokesman said on Wednesday that the company will appeal the ruling.

“We have been promoting a healthy and competitive Indonesian app ecosystem,” the spokesperson said, adding that the company is committed to complying with Indonesian laws.

Google has previously been fined more than 8 billion euros ($8.3 billion) by the EU over the past decade for anti-competitive practices related to its price comparison service, Android operating system and advertising services.

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