Google App Store under antitrust investigation in Indonesia

Indonesia's antitrust regulator "Competition Authority" (KPPU) announced today that it has launched an antitrust investigation into the Google Play Store app store because it forced developers to use Google's proprietary technology. payment system, suspected of unfair competition.


"We suspect that Google is abusing its dominant position in the Indonesian app distribution market by implementing conditional sales and discriminatory practices," KPPU said in a statement. KPPU also said that a preliminary investigation found that since June 1 this year, , Indonesian app developers are required to use Google's payment system, which charges a 15% to 30% commission.


KPPU believes the fee is much higher than other services, which typically cost less than 5%. KPPU also said that if developers do not comply with Google's request, their apps may be removed from the Google Play Store. According to KPPU data, Google controls 93% of the Indonesian app distribution market.


Google has yet to comment on this.


In recent years, critics have accused Google and Apple of overcharging their mobile app stores. Data shows that developers collectively pay Apple and Google billions of dollars a year, underscoring the monopoly power of the two companies.


In addition to Indonesia, many antitrust agencies around the world, including the European Union, have launched monopoly investigations on Google and Apple's App Store. In response to these investigations, Google has previously said that the portion of the commission it charges developers helps keep Android free and gives developers the tools and platform to serve billions of consumers around the world.


The KPPU's investigation will run for 60 days. If Google is found to have violated antitrust laws, it could be fined up to 50 percent of its net profit during the period of violation, an official at the agency said.

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