Indonesia fines Google $12.4M for play store payment practices

Indonesia's antitrust agency on Tuesday ordered Google to pay a hefty fine of approximately 202 billion rupiah ($12.4 million). This action places Indonesia alongside other countries that are increasingly taking a stand against the tech giant.

The antitrust agency found that Google had engaged in unfair business practices related to its Google Play Store payment system.

The investigation, launched in 2022, centered on allegations that Google abused its dominant market position by forcing Indonesian app developers to utilize Google Play Billing. This system, which charges fees of up to 30%, was deemed by the agency to be detrimental to developers' earnings.

The agency's panel concluded that Google's actions violated Indonesian anti-monopoly laws, significantly impacting developers' revenue and hindering user growth.

Google, which holds a commanding 93% market share in Indonesia's rapidly growing digital economy, has contested the ruling and plans to appeal. The company maintains that its current practices support a healthy and competitive app ecosystem.

This fine adds to Google's growing list of antitrust penalties. In the past decade, the European Union has imposed fines exceeding 8 billion euros ($8.3 billion) on the tech giant for various anti-competitive practices.

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