Indonesia fines Google US$12.4M for monopolistic practices

Indonesia’s antitrust watchdog has ordered technology giant Google to pay IDR202.5 billion (US$12.4 million) for monopolistic practices related to payment services on its app store.

The Komisi Pengawas Persaingan Usaha (KPPU) stated that, in addition to fining Google, it has directed the company to cease the mandatory use of Google Play Billing (GPB) on the Google Play Store. The agency also ordered Google to reduce service fees for alternative billing platform apps by 5% for a year to promote competition. Currently, app developers are charged service fees ranging from 15% to 30%.

App developers are required to use GPB to publish and update apps on the Play Store.

The KPPU noted that the exclusive requirement to use GPB had significant impacts on Android users. The agency explained that restricting rival payment platforms led to a decline in app users, reduced transaction volumes, and increased app prices—rising by as much as 30% due to higher service costs.

Google plans to appeal the ruling, asserting that its practices foster competition while complying with Indonesian law.

Meanwhile, smartphone rival Apple has encountered issues in Indonesia, with its latest iPhone 16 range currently banned from being sold in the country.