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Indonesian anti-trust agency investigates unfair Google app payments

Indonesian anti-trust agency investigates unfair Google app payments

Indonesian watchdog KPPU is investigating Google for breaching anti-monopoly laws and carrying out unlawful business practices on the Google Play Store.

Google controls 93% of the market share in a nation with a blossoming digital economy where countless app developers are using Google software to launch their products and services. The tech giant is being investigated for charging a steep 15-30% fee on their payment system and threatening apps to be removed from the Google Play Store if not compensated.

A statement from the antitrust agency relayed: “KPPU suspects that Google has conducted an abuse using its dominant position, conditional sales, and discriminatory practices in digital application distribution in Indonesia.”

KPPU is conducting a 60 day investigation, during which if Google is found guilty the company will face a fine of up to 50% of net profit gained during the period.

This is not the first instance in which Google has been targeted by authorities for fraudulent activities; in the last decade the European Union fined Google nearly €8 billion for anti-competitive practices, and South Korea passed an anti-Google law last year which forbids app store operators from forcing developers to use their payment systems and charging them unjust commission. In January, the US Senate passed a major antitrust bill that will impact Google and other Big Tech companies in their monopolistic practices.

Google has yet to respond to the accusations, but in previous similar situations have claimed that the fee allows the tools and platforms accessible to global users via Android to be free.

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