Jakarta – Google has rejected the Indonesian Competition Commission’s (KPPU) ruling that the company engaged in monopolistic practices. A Google representative stated that they disagree with the decision.
The representative claimed that Google’s current practices positively impact Indonesia’s app ecosystem, creating a healthy and competitive environment.
“We disagree with KPPU’s decision and will appeal. We believe that our current practices have a positive impact on the app ecosystem in Indonesia by fostering a healthy and competitive environment,” said the Google representative in a statement received by detikcom, Wednesday (January 22, 2025).
Google elaborated on this healthy and competitive climate by providing a secure platform, access to global markets, and diverse choices, including alternative billing systems such as User Choice Billing on Google Play.
Additionally, Google highlighted its support for Indonesian developers through various comprehensive initiatives, such as the Indie Games Accelerator, Play Academy, and Play x Unity programs, demonstrating its deep investment in their success.
“We are committed to complying with Indonesian laws and will continue to collaborate constructively with KPPU and all relevant parties throughout the appeal process,” the statement added.
Background of KPPU’s Decision
KPPU previously fined Google LLC IDR 202.5 billion for monopolistic practices. The commission issued this ruling after finding Google LLC violated several articles of Law Number 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition.
The commission’s analysis identified Google Play Store as a digital platform connecting app developers and users by offering Google Play Billing (GPB) System for payment transactions related to in-app purchases. The market in question pertains to the distribution of applications and digital services via digital platforms that can be pre-installed on all Android-based smartphones in Indonesia during the investigation period from June 1, 2022, to December 31, 2024.
Key Findings
The commission determined Google Play Store as the sole pre-installed app store on Android devices, controlling over 50% of the market share. Google’s policy of mandating the use of GPB System for all in-app transactions and prohibiting alternative payment methods led to several impacts on users, including:
- Limited payment method options.
- Decreased app users and transactions, correlating with reduced revenues.
- A price increase of up to 30% due to higher service costs.
Based on these facts, the commission found Google LLC guilty of violating two articles of Law Number 5 of 1999:
- Article 17, concerning monopolistic practices and unhealthy business competition.
- Article 25, paragraph 1(b), concerning dominant positions that hinder consumers from accessing competitive goods or services, in terms of price and quality.
The commission ordered Google to pay a fine of IDR 202.5 billion to the state treasury.
