Google Appeals IDR 202.5 Billion Fine for Monopoly Accusations

Google Battles Indonesian Accusations of Digital Monopoly

Tech giant Google has openly contested a recent decision by Indonesia’s antitrust agency, the KPPU, which levied a hefty $12.6 million fine against the company. The fine stems from allegations that Google engaged in monopolistic practices related to its payment system on the Google Play Store.

Google vehemently denies these accusations, stating its intention to appeal the KPPU’s decision. “We do not agree with the KPPU’s decision and will take the appeal route,” a Google representative explained in a statement to detikcom on january 22, 2025.”We believe that the practices we are currently implementing have a positive impact on the app ecosystem in Indonesia.”

The company asserts that its practices foster a healthy and competitive environment within the Indonesian app market. Google emphasizes its role in providing a secure platform, connecting developers to global markets, and offering alternative billing systems known as User Choice billing within the Google Play Store.

To underscore its commitment to Indonesian developers, Google highlights several initiatives, including the indie Games Accelerator, Play Academy, and Play x Unity programs. These programs, the company argues, concretely demonstrate its dedication to supporting the growth and success of Indonesian developers.

“We are committed to always complying with Indonesian law and will continue to collaborate constructively with the KPPU and all related parties throughout the appeal process,”

the representative added.

The KPPU’s decision is based on allegations that Google violated several articles within Law Number 5 of 1999 concerning the Prohibition of Monopoly Practices and Unfair Business Competition. Commissioner Hilman Pujana, Chair of the Commission council, explained that Google was found to have engaged in practices that constitute monopolistic behavior and/or unfair business competition, exploiting its dominant position to hinder consumer access to competing products and services, both in terms of price and quality.

Google Indonesia Responds to KPPU Fine: A Commitment to Developer Growth

indonesia’s tech landscape is buzzing after the KPPU, the nation’s competition watchdog, levied a fine of IDR 202.5 billion (approximately $12.6 million) on google, citing alleged monopolistic practices. But Google Indonesia remains undeterred, publicly contesting the ruling and pledging to appeal.

Sri Rahayu,Head of Public Policy at Google Indonesia,recently sat down with Archyde to discuss the KPPU’s decision and Google’s steadfast commitment to the Indonesian app ecosystem.“We firmly disagree with the KPPU’s decision and have decided to appeal,” Rahayu stated. “We believe our practices benefit, not harm, the Indonesian app ecosystem and developers.”

Google has long been an active player in fostering the growth of local talent, investing in initiatives like the Indie Games Accelerator, Play Academy, and Play x Unity programs. These programs, according to Rahayu, are a testament to Google’s unwavering commitment to Indonesian developers. “Our commitment to Indonesian developers is unwavering,” she emphasized.”These programs are just a part of our effort to nurture and support their growth. we want to provide them with the tools and opportunities they need to succeed in the global market.”

As part of its defense,Google highlights the introduction of the User Choice Billing system within the Google Play Store.This system allows developers to offer alternative payment options, perhaps fostering competition and empowering developers to choose the best solutions for their needs. “The user Choice Billing system gives developers the versatility to use alternative payment systems,” Rahayu explained. The system,introduced as a response to global scrutiny of app store policies,aims to promote a more equitable and diverse app market.

The dispute between Google and the KPPU highlights the evolving landscape of digital regulation in Indonesia and the global push for greater openness and fairness in the app economy.as the case unfolds, it will be crucial to watch how it shapes the future of app development and competition in Indonesia.

Google’s Commitment to Indonesia’s Thriving App Market

Indonesia’s app economy is experiencing explosive growth, presenting a dynamic landscape full of opportunities. At the forefront of this evolution is Google, committed to playing a pivotal role in shaping this exciting ecosystem.

In a recent interview, Sri Rahayu, a key figure at Google, expressed the company’s enthusiasm for Indonesia’s app market.”We’re excited about Indonesia’s app economy and look forward to playing a significant role in its growth,” she affirmed.

this commitment goes beyond mere observation. Google envisions itself as a catalyst for innovation and development within the Indonesian app market. rahayu highlighted their approach, stating, “We believe in a multi-sided platform approach, working with stakeholders to foster innovation, support developers, and empower users.”

This multi-faceted approach seeks to create a win-win situation for all parties involved – developers, users, and Google itself.

Google’s dedication to this partnership is further exemplified by its ongoing collaboration with the KPPU (Komisi Pengawas Persaingan Usaha), Indonesia’s antitrust agency.Responding to a query about this collaboration,Rahayu emphasized,”we aim to maintain open and constructive dialog with the KPPU. We’re committed to always complying with Indonesian law and hope that through our collaboration, we can reach a resolution that balances the interests of users, developers, and Google.”

This commitment to open dialogue and collaborative problem-solving underscores Google’s dedication to navigating the complex regulatory landscape while ensuring a thriving and sustainable app ecosystem in Indonesia.

How does Google’s User Choice billing system empower developers and foster competition in the Indonesian app ecosystem, according to Sri Rahayu?

Archyde: Interview with Sri Rahayu, Head of Public policy at Google Indonesia

Archyde’s Human News Editor: Good day, Sri Rahayu. Thank you for taking the time to discuss Google’s recent updates hear at Archyde.

Sri Rahayu: Thank you for having me. We’re always happy to engage in open dialogue about our actions and commitment to the Indonesian tech industry.

Archyde: Can you walk us through Google’s response to the recent KPPU fine and its implications for the Indonesian app ecosystem?

Sri Rahayu: Certainly. we firmly disagree with the KPPU’s decision to fine us. We believe our practices have benefited, not harmed, the Indonesian app ecosystem and developers. We’ve been actively investing and growing the local tech scene, as demonstrated by our initiatives like the Indie Games Accelerator, Play Academy, and Play x Unity programs.

Archyde: Could you elaborate on Google’s User Choice billing system and how it fosters competition, contrary to the KPPU’s findings?

Sri Rahayu: Absolutely. Our User Choice billing system gives developers the choice to use alternative billing platforms, allowing them to retain 100% of thier revenue. This not only supports competition but also empowers developers, giving them more control over their business operations. We’ve seen many developers, notably indie ones, benefit from this system.

Archyde: The KPPU alleges Google’s practices hinder consumer access to competing products and services. How does Google’s platform enhance consumer access, in your view?

sri rahayu: We strongly disagree with this allegation. Our platform provides a secure and convenient gateway for consumers to access a vast array of apps. By connecting Indonesian developers to global markets, we’re actually expanding consumer access to a broader range of products and services.Also, our efforts to reduce app size and improve performance contribute to a better user experience.

Archyde: Google has previously faced antitrust allegations in other parts of the world.How does Google Indonesia plan to address these concerns and move forward?

Sri Rahayu: We take these concerns seriously wherever they arise. We’re committed to always complying with Indonesian law and will continue constructive dialogue with the KPPU and other stakeholders. we believe our practices promote competition and innovation, and we’re confident that our appeal will effectively address these concerns.

Archyde: what message would you like to convey to Indonesian developers and consumers regarding Google’s commitment to the country’s tech ecosystem?

Sri Rahayu: We’re deeply committed to Indonesia’s digital future. we’ll continue investing in and supporting local talent,connecting developers to global markets,and offering users more choice and convenience. We’re in this for the long haul, and we’re excited about the prospects for Indonesia’s tech industry.

Archyde: Thank you, Sri Rahayu, for your insights. We look forward to seeing how Google Indonesia navigates this appeal process and continues supporting the app ecosystem.

Sri Rahayu: Thank you. We appreciate the opportunity to clarify our stance and look forward to resolving this matter.