Description

Competition Commission fined Google IDR 202 billion (USD 12.37 million) over abuse of dominant market position

On 21 January 2025, the Indonesian Competition Commission (KPPU) ordered Google to pay a fine of IDR 202 billion (equivalent to USD 12.37 million) following its investigation into alleged abuse of a dominant market position, resulting in violations of Law Number 5 of 1999. The case concerned Google’s mandatory Google Play Billing System (GPB System) for app transactions on the Google Play Store, which limited market competition and raised app prices. The investigation determined that Google's GPB System, which charged a 15%-30% service fee, monopolised the Android app distribution market in Indonesia. Developers faced penalties, such as app removal, for non-compliance, leading to reduced user choice, increased app prices, and financial losses for developers. The Google Play Store’s dominance was confirmed, controlling over 50% of the market share. Google has 30 days to pay the fine, with a 2% monthly penalty for delays. If it appeals, Google must provide a bank guarantee covering 20% of the fine.

Original source

Scope

Policy Area
Competition
Policy Instrument
Unilateral conduct regulation
Regulated Economic Activity
software provider: app stores
Implementation Level
national
Government Branch
executive
Government Body
competition authority

Complete timeline of this policy change

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2022-09-16
under deliberation

On 16 September 2022, the Indonesia Competition Commission (ICC/KPPU) announced an investigation in…

2023-11-29
under investigation

On 29 November 2023, the Indonesian Competition Commission (ICC/KPPU) issued an interim ruling in i…

2024-07-16
under appeal

On 16 July 2024, Google submitted its response to allegations by the Indonesian Competition Commiss…

2025-01-21
in force

On 21 January 2025, the Indonesian Competition Commission (KPPU) ordered Google to pay a fine of ID…

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