Indonesia fines Google $12.4 mn for anti-competitive play billing practices

Indonesia’s antitrust authority, the KKPU, has imposed a fine of around 202 billion rupiah ($12.4 million) on Google’s parent company Alphabet Inc, for engaging in unfair business practices tied to its payment system on the Google Play Store.

According to a report by Reuters on Tuesday, the ruling follows a detailed investigation launched in 2022, focusing on Google’s dominant market position and its requirement that app developers exclusively use Google Play Billing for transactions.

App developers charged high fees

The investigation revealed that Google made Indonesian app developers to use its Google Play Billing system, which charged fees of up to 30 per cent. This practice, according to the antitrust authority, reduced developers’ earnings and user base, thereby violating Indonesia’s anti-monopoly laws.

The antitrust agency also highlighted Google’s substantial market control, with a 93 per cent share in Indonesia’s rapidly expanding digital economy. The ruling accused Google of leveraging its dominance to disadvantage local developers and stifle competition.

Google to appeal the ruling

A Google spokesperson announced that the company intends to appeal the ruling, asserting that its practices encourage a competitive and healthy app ecosystem in Indonesia. Google also emphasised its commitment to complying with local laws, pointing out the recent introduction of an alternative billing option for developers.

Past fines against Google

This fine adds to a series of global penalties Google has faced over the years for anti-competitive behaviour.

European Union: In the European Union, Google has incurred fines exceeding €8 billion ($8.3 billion) for practices related to its price comparison service, Android operating system, and advertising services over the past decade. This includes the $5 billion fine imposed in 2018 for Google’s misuse of its dominant position in online search to promote its own services. Google has since appealed this decision.

India: In India, the Competition Commission of India (CCI) fined Google Rs 1,337.76 crore in October 2022 for abusing its Android operating system’s licensing agreements. The CCI criticised Google for compelling smartphone manufacturers to pre-install its suite of apps, thereby limiting competition in web search, browsing, and video hosting. In November 2024, the CCI ordered a fresh investigation into the tech giant following a complaint filed by Winzo Games for alleged unfair business practices with respect to listing of real money gaming apps on Play Store.

Russia: In January 2025, a Russian court fined Google $78 million for failing to comply with previous penalties related to content deemed illegal by Russian authorities. President Vladimir Putin accused Google of serving US political interests, further straining relations between the tech giant and the Russian government.