Indonesia Antitrust Regulator Launches Google Probe

Indonesia’s anti-trust agency (KPPU) said on Thursday it is investigating potential unfair business practices by Google over the use of proprietary payment services for its software distribution platform Google Play Store.

The move follows similar investigations by antitrust regulators globally involving Google.

“KPPU suspects that Google has conducted an abuse using its dominant position, conditional sales and discriminatory practices in digital application distribution in Indonesia,” it said in a statement.

An initial investigation found that since June 1 Indonesian app developers had been required to use Google’s payment system, which charges a 15% to 30% fee, the KPPU said.

The amount charged by Google Pay Billing is much higher than other services, which cost under 5% before the requirement took effect, it said.

If apps did not comply, they risked being removed from Google Play Store, it added.

KPPU said Google controlled a 93% market share in the country of 270 million people which has a fast growing digital economy.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.