
RI Fines Google IDR 202 Billion, KPPU Asks for Play Store to be Overhauled
Jakarta, CNBC Indonesia –The Business Competition Supervisory Commission (KPPU) has just imposed a sanction on Google worth IDR 202.5 billion. This is related to the payment system service for the Google Play Store which is considered unfair.
The KPPU Panel in the Reading of the Decision on Case Number 03/KPPU-I/2024 was led by Commissioner Hilman Pujana as Chair of the Commission Panel and accompanied by Commissioner Eugenia Mardanugraha and Commissioner Mohammad Reza, as Members of the Commission Panel.
Since 2022, the KPPU has been investigating Google regarding the obligation for Indonesian application developers to use Google Pay Billing. However, this obligation comes with many injustices.
Developers are charged higher rates compared to other payment systems. Not only that, those who refuse will face the removal of their applications from the Google Play Store.
In the latest hearing, the KPPU stated that the system run by Google was called unfair. Because it will have an impact on reducing developer income.
KPPU also found that Google charged 30% of the tariff through the Pay Billing system implemented by the company. Meanwhile, the search engine giant also dominates the market, because it has a market share of 93%.
Hilman explained that there were two articles violated by Google LLC. First, article 17 of Law Number 5 of 1999 related to causing monopolistic practices and/or unfair business competition.
Second, article 25 paragraph 1 letter b of Law Number 5 of 1999 related to the element of dominant position and preventing consumers from obtaining competitive goods or services, both in terms of price and quality.
However, Hilman also explained that Google LLC did not violate several articles in Law 5/1999, such as article 19 letters a and b and article 25 paragraph 1 letter a.
“Declaring that the reported party has not been proven to have violated Article 25 paragraph 1 letter a of Law Number 5 of 1999. Declaring that the reported party has been proven legally and convincingly to have violated Article 25 paragraph 1 letter b of Law Number 5 of 1999,” said Hilman Pujana in the Reading of the Decision at the KPPU Office, Central Jakarta, Tuesday (1/21/2025).
In the decision, Hilman asked Google LLC to stop the obligation to use the Google Play Billing (BPB) System in the Google Play Store. His party also imposed a fine on Google LLC of IDR 202.5 billion.
“Punishing the reported party to pay a fine of two hundred and two billion five hundred million rupiah (IDR 202.5 billion) which must be deposited into the state treasury as a deposit of income from fines for violations in the field of business competition of the KPPU work unit through a bank with the receipt code 425812 income from fines for violations in the field of business competition,” added Hilman.
In addition, Google LLC must also announce the provision of opportunities for all developers to participate in the user choice billing (UCB) program. The program provides incentives in the form of a service reduction of at least 5% for a period of 1 year since the decision has permanent legal force.
SOURCE : CNBC INDONESIA