TEMPO.CO, Jakarta - The Business Competition Supervisory Commission (KPPU) highlighted a number of things that proved the alleged market monopoly by Google Limited Liability Company (LLC). The Commission Panel considered that Google was proven to require developers to use Google Play Billing (GPB) as a payment system when distributing applications through the Google Play Store.  

The Commission said the mandatory use of the GPB system is detrimental to app developers in Indonesia. "The restriction of payment methods has an impact on the reduction in the number of application users, a decrease in transactions which correlates with a decrease in revenue, and an increase in application prices of up to 30 percent due to increased service costs," KPPU said in its official statement on Wednesday, January 22, 2025.

The Commission Panel found how Google through the Google Play Store, which controls more than 50 percent of the market share of application stores for Android-based mobile devices, launched its monopoly. According to the facts of the trial, Google imposed sanctions on application developers who refused to use the Google Play Billing System. The sanctions are in the form of removing the application from the Google Play Store and not allowing updates to the application.

"As a result, some applications disappeared from the Google Play Store because application developers did not follow the GPB System policy," said KPPU. Developers must also accept consequences such as difficulties in adjusting the user interface (user interface) and user experience (user experience). Thus, the Commission Panel believes that Google's sanctions add to developers' complexity in maintaining market competitiveness.

Based on the evidence and facts revealed in the trial, the Commission Panel concluded that Google LLC was legally and convincingly proven to have violated Article 17 and Article 25 letter b of Law Number 5 Year 1999 Concerning Prohibition of Monopoly and Unfair Business Competition. However, the Commission Panel decided that there was insufficient evidence to prove that Google violated Article 19 letter a and letter b, as well as Article 25 paragraph (1) letter a. For these violations, the Commission Panel ordered Google LLC to issue an order to the Commission.

For this violation, the Commission Panel ordered Google LLC to pay a fine of Rp202,500,000,000 (Rp 202.5 billion), which must be deposited into the state treasury as revenue from fines for violations in the field of business competition. The Commission Panel also instructed Google LLC to stop the mandatory use of Google Play Billing in the Google Play Store.

On the other hand, Google rejected the KPPU's decision in the decision hearing on Tuesday, January 21, 2025. We disagree with KPPU's decision and will take the appeal route," said a Google representative in an official statement on Wednesday, January 22, 2025. Google believes that the current policy positively impacts the application ecosystem in Indonesia.

That impact, says Google, is to encourage creating a healthy and competitive environment by providing a secure platform and access to the global market. Google also claims to have provided an alternative billing system according to user choice (User Choice Billing) on Google Play. So Google guarantees a diversity of choices for application developers when using Google services.

Google expressed its commitment to comply with Indonesian law during a business competition dispute. "We will continue to collaborate constructively with KPPU and all relevant parties throughout the appeal process," said a Google representative.

Apart from KPPU, cases related to Google Play Billing are also handled by various other competition authorities. One of them, the Competition Commission of India (CCI) in October 2022 imposed a sanction of Rs 936.44 crore or around Rp 1.76 trillion on Google for abusing a dominant position in its Play Store policy.

After the verdict, Google stopped its Google Play Billing enforcement and appealed the CCI's decision to the National Company Law Appellate Tribunal (NCLAT). The process is still ongoing.

Then, the UK Competition and Market Authority (CMA) also conducted a similar investigation on June 10, 2022. Google submitted a commitment proposal, which the CMA rejected on August 21, 2024, closing the case based on administrative priority.

Adil Al Hasan contributed to the writing of this article.

DIAN RAHMA FIKA | AISHA SHAIDRA

Editor's Choice: Google to Appeal KPPU Ruling on Monopolistic Practices

Click here to get the latest news updates from Tempo on Google News