Business

Indonesia investigating Google over app store payment system

Authorities suspect tech giant had imposed ‘conditional sales and discriminatory practices’

Updated 3 years ago · Published on 16 Sep 2022 5:50PM

Indonesia investigating Google over app store payment system
Google Play is the largest app distribution platform in Indonesia, a country of around 270 million people. – GadgetsNow.com pic, September 16, 2022

JAKARTA – Indonesia has launched an antitrust investigation into Google over the tech firm’s insistence that its payment system be used for purchases from its app store, authorities said yesterday, accusing it of unfair business practices.

The US internet giant has been under legal scrutiny in a number of countries over its stipulation that its billing system be used by all buyers on Google Play.

Authorities in Jakarta said in a statement they suspected “Google has abused its dominant position by imposing conditional sales and discriminatory practices in digital application distribution in Indonesia”.

Google Play is the largest app distribution platform in Indonesia, a country of around 270 million people.

Third-party developers offering their apps on Google Play are charged a 15 to 30% service fee, higher than the 5% imposed by other payment systems, according to an initial probe by the nation’s antitrust agency.

“The respective developers cannot refuse the obligation, because Google can impose sanctions by removing their applications from the Google Play store and preventing them from making updates to their applications,” the agency said.

Google Indonesia said today that it would work with the Indonesian authorities “to demonstrate how Google Play supports developers”.

It added that since early this month, it has started a pilot billing system, allowing an alternative payment system alongside the one used on Google Play.

The American multinational has faced a barrage of legal cases in the US, Europe and Asia based on similar accusations.

Google has also faced claims that it unfairly forced its search engine and Chrome internet browser on phone makers using the Android operating system.

On Wednesday, the European Union’s second-highest court ruled that “Google imposed unlawful restrictions on manufacturers of Android mobile devices”.

The court upheld the EU’s record fine of more than €4 billion (RM18 billion) against Google

That case was the third of three major cases brought against Google by the EU’s competition czar Margrethe Vestager, whose legal challenges were the first worldwide to directly take on Silicon Valley tech giants.

South Korea fined Google nearly $180 million last year for abusing its dominant market position in a similar case regarding the Android system. – AFP, September 16, 2022

Related News

World / 1w

Powerful earthquake strikes off coast of Indonesia; tsunami warning issued

Events / 2w

Former Indonesian president in Penang next month for inaugural Peace Dialogue

Malaysia / 4mth

Hajiji denies claims Sebatik Island land was handed over to Indonesia

Malaysia / 5mth

Google investment expected to generate US$3.2 billion, 26,500 jobs

Sports & Fitness / 6mth

Malaysia clinches three titles at Indonesia Masters

Sports & Fitness / 7mth

Valencia coach Fernando Martin dies in Indonesia boat accident

Spotlight

World

Series of explosions, fires hit three southern Thai provinces

Opinion

One more temple falls: The destruction of Malaysia’s soul?

Opinion

Why is Israel pushing toward confrontation with Türkiye?

Malaysia

‘Uncle Anwar’ sends representative to children’s entrepreneurs day in Subang Jaya

Malaysia

‘Look at temple dispute based on facts and laws’ – DAP reps tell Rayer

By Alfian Z.M. Tahir

Malaysia

Malaysia, Brunei set deadline to demarcate boundary, enhance border security

Malaysia

Police probe indecent act allegedly targeting woman in Sungai Petani

Malaysia

Sarawak postpones three major programmes over haze concerns

You may be interested

Business

Oil prices pull back after rally as markets brace for tougher Iran sanctions

Business

Govt rules out RM7.5b Datasonic takeover amid identity security concerns