KPPU Fines Google IDR 202.5 Billion For Google Play Store Monopoly Practice

JAKARTA - The Business Competition Supervisory Commission (KPPU) has officially stated that Google LLC is guilty of alleged monopoly on the implementation of Google Play Billing in various applications.

Based on the evidence and facts revealed during the trial, the Commission Council concluded that Google LLC was proven to have violated Article 17 and Article 25 letter b of Law No. 5 of 1999, but there was not enough evidence for alleged violations of Article 19 letter a and letter b, as well as Article 25 paragraph (1) letter a.

Through a decision read out on Tuesday, January 21, the Commission Council fined Google LLC IDR 202.5 billion, which must be deposited into the State Treasury as a fine for violations in the field of business competition.

In addition, the Commission Council also ordered Google LLC to stop its obligation to use Google Play Billing in the Google Play Store.

Also, KPPU ordered Google to opportunity all app developers to take part in the User Choice Billing (UCB) program, by providing incentives in the form of reducing service fees by at least 5 percent for a period of one year, since this decision.

Payment of the above fine must be paid a maximum of 30 (twenty) days since the Decision has permanent legal force.

This case starts with the KPPU initiative for alleged Google violations which requires app developers on the Google Play Store to use the GPB System with a service fee of 15-30 percent and impose sanctions in the form of application removal for those who do not comply.

By controlling more than 50 percent of the Android-based application market share in Indonesia, KPPU assesses that Google limits the market and technology development by not allowing alternative payment methods.

This has an impact on limited choice for users, decreased transactions, and 30 percent increase in application prices.