Indonesia antitrust agency probes Google over alleged monopolistic practices

Komisi Pengawas Persaingan Usaha (KPPU), Indonesia’s antitrust agency, has started probing into tech titan Google for alleged monopolistic practices and unfair competition.

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In a statement, KPPU said it suspects that Google has crossed the line by “using its dominant position, conditional sales, and discriminatory practices in digital app distribution in the country.”

The agency added: “The investigation process will be carried out for the next 60 working days, in order to obtain sufficient evidence, clarity, and completeness of alleged violations of the law.”

In its initial investigation, KPPU found that Google had required certain apps to use Google Play Billing as their payment method on June 1. Under this system, the apps had to pay Google a revenue fee of 15% to 30%, which the agency said is burdensome.

Before this policy came out, the certain apps could use other payment methods, which charge fees at below 5%.

Apps that had to switch to Google Play Billing include those offering subscription services such as edtech, music and video streaming, as well as apps that sell digital items such as games. Non-compliant apps could be removed from the Google Play Store, KPPU said.

The agency also found that Google Play Store controlled 93% of the market share of app distribution platforms in the country.

See also: Behind the rise of Google Classroom in Indonesia

“For app developers, Google Play Store is difficult to substitute because majority of end users or consumers in Indonesia download their apps on the Google Play Store,” KPPU explained.

Tech in Asia has reached out to Google for comment.

Similar cases have occurred in other countries. For example, the Competition Commission of India (CCI) is reportedly in the final stages of its investigation and will soon issue a verdict on Google Play Billing policies.