Denies Doing Play Store Monopoly, Google Will Appeal

Google denies monopolies in Indonesia (photo: Rana/VOI)

The Business Competition Supervisory Commission (KPPU) stated that Google LLC was proven to have carried out a monopoly practice on Wednesday, January 22. The tech giant was fined Rp202.5 billion.

This penalty was imposed due to the application of the Google Play Billing System (GPB) which was considered unfair. All app developers who distribute their applications on the Google Play Store, Google app store, must apply GPB or receive sanctions.

Based on the KPPU's follow-up examination on December 3, the use of the GPB System must exist in every purchase of digital products and services distributed on the Google Play Store. The important thing to note is that Google does not allow alternative payments.

This requirement is considered to have an impact on its users. What's more, Google is implementing a fairly large service fee, which is around 15 to 30 percent. In addition, the developer is also disadvantaged because the number of transactions has decreased.

"The limitation of the payment method has an impact on reducing the number of application users, reducing transactions that are correlated with decreasing income, as well as an increase in application prices by up to 30 percent due to the increase in service costs," explained KPPU in the latest press release.

From the evidence and facts during the trial, the KPPU Assembly concluded that Google had violated Article 17 and Article 25 letter b of Law no. 5 of 1999. Google is obliged to pay a fine for 30 days from the time the decision was made. If it is late, Google is required to pay a delay fine of 2 percent.

After the decision was made, Google stated that they rejected the decision and would file an appeal. The company stated that the practices they have implemented so far have had a positive impact on the application ecosystem in Indonesia.

"We do not agree with the KPPU's decision and will take the appeal route. We believe that the current practice has a positive impact on the application ecosystem in Indonesia, by encouraging the creation of a healthy and competitive environment," said a Google representative, quoted through CNN Indonesia.