On Tuesday, the Indonesian antitrust agency issued a decision requiring Google to pay fines of up to 202 billion Indonesian rupiah (equivalent to $12.37 million) due to unfair business practices related to payment services through the Google Play Store. This decision came after an investigation initiated by the agency in 2022 concerning the payment methods imposed by Google on app developers in Indonesia.
Investigation into Payment Practices and Imposing Fines The case revolves around Google's policies that forced app developers in Indonesia to use the Google Pay Billing payment system, which required them to pay fees higher than those imposed by other payment systems, which is considered a violation of fair competition laws in the country. If developers refused to follow this policy, they faced the risk of having their apps removed from the Google Play Store.
Google's Defense and Policy Details In response to these allegations, Google stated that it had offered an alternative option for developers that allows them to provide alternative payment options for users, which supposedly enhances transparency and gives consumers freedom of choice. Despite these attempts, the investigations continued, leading to the imposition of fines on the company.
Potential Implications for Google in the Indonesian Market Google now faces significant challenges in Indonesia, where it is considered one of the leading companies in digital distribution. These fines may affect its position in the local market, especially amidst the tightening regulations on tech companies by governments in various countries.
Alphabet Stock Movement In trading, Alphabet's stock, the parent company of Google (NASDAQ: GOOG), saw an increase of 1.56% or $3.08 per share, trading near levels of $200.63 during American stock market transactions.
