Just recently, Google dodged a $1.7 billion antitrust fine due to procedural errors from the European Union. Now, Indonesia has slapped Google with a $12.4 million (202 billion rupiah) fine for what it calls “unfair business practices.”
Some might say that fining a tech giant like Google, a company with its market cap of over a trillion dollars, a mere $12.4 million might just be like fining a billionaire the cost of a cup of coffee. Right? But hey, it’s the principle that counts, right?
Indonesia’s antitrust agency has accused Google of abusing its dominant position by forcing Indonesian app developers to use Google Play Billing, which charges higher rates than other payment systems. The agency launched an investigation into Alphabet Inc‘s Google in 2022. The panel said in a hearing that this practice has reduced developers’ earnings and stifled competition.
Google has been found guilty of breaking the country’s monopoly laws. The tech giant controls a whopping 93% market share in Indonesia, which has 280 million people and has a fast-growing digital economy. The agency also discovered that Google charges a fee of up to 30% via Google Play Billing.
A Google spokesperson said the company would appeal the ruling. The spokesperson said: “Our current practices foster a healthy, competitive Indonesian app ecosystem,” adding it was committed to complying with Indonesian law.
So, what does this $12.4 million fine mean in the grand scheme of things? For Google, it might just be a drop in the ocean. However, for Indonesia, it could be a sign of change. Indonesia is sending a message that it won’t tolerate unfair business practices, no matter how big the offender by taking this bold stand against one of the world’s most powerful companies.
What is next? Will this lead to more significant changes in how tech giants operate globally? Will other countries follow Indonesia’s lead? Or will Google continue to dodge or pay these fines?
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