Google is one of the biggest internet companies in the world and there are only a few companies that can compete with it. Like other big tech companies, Google is usually the focus of multiple investigations. According to reports, the Indonesian antitrust regulator Competition Authority (KPPU) has announced that it has launched an antitrust investigation into the Google Play Store app store. The reason for the investigation is related to the Play Store payment policy. There are reports that Google is forcing developers to use its own payment system. The report claims that this act is unfair competition. He claims that Google is taking advantage of its dominant position to suppress other payment options.
“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 claimed that a preliminary investigation found that from June 1 this year, Indonesian app developers are required to use Google’s payment system. This payment system charges a commission between 15% and 30%.
KPPU believes the fee is much higher than other services, which typically cost less than 5%. Additionally, 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 app distribution market in Indonesia. There is currently no official comment from the company regarding this antitrust investigation
Google is not new to this antitrust investigation
In recent years, critics have accused Google and Apple of overstating their mobile app stores. The data shows that developers collectively pay Apple and Google billions of dollars a year. This shows 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 into Google and Apple’s App Store. Google has previously said that part of the commission it charges developers helps keep Android free. The fee is also said to give developers the tools and platform to serve billions of users worldwide.
The KPPU investigation will continue for 60 days. If Google is guilty, it can pay a fine of up to 50% of its net profit during the period of the infringement.