Google, the tech behemoth, has been struck by a $12.6M penalty for monopolistic behavior related to its Google Play Store’s payment system, as per Indonesia’s antitrust watchdog. In a recent ruling, the KPPU targeted Google for enforcing Google Play Billing while inhibiting other payment methods within its platform.
As a response to this ruling, Google is encouraged to stop the compulsion of Google Play Billing and simultaneously, invite developers to engage in User Choice Billing, while providing a service fee discount of 5% for the following year.
The investigation started following the company’s demand that Indonesian developers use Google Play Billing, which exhibited higher fees than alternative payment systems. According to the watchdog, Google’s restrictions on alternative payment methods for in-app purchases have lowered transactions and revenues for developers.
The highlight of this ruling lies in the fact that Google Play Store is the only default app store on Android devices, controlling more than half of the market. Moreover, with Google maintaining 95.16% of the Indonesian search market, it amplifies the scope of this issue.
Although Google plans to appeal against this ruling, according to Danielle Cohen, a Google spokesperson, this verdict signifies a critical reminder of the legal tensions Google faces globally over antitrust disputes.
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