Google App Store is subject to antitrust investigation in Indonesia: forcing developers to use its payment system

According to reports on the evening of September 15, Beijing time, Indonesia's antitrust regulator, the Competition Administration (KPPU), announced today that it has launched an antitrust investigation into Google's Play Store App Store because it forced developers to use Google's proprietary payment system on suspicion of unfair competition.

"We suspect that Google abused its dominant position in Indonesia's App distribution market to implement conditional sales and discriminatory practices," KPPU said in a statement. KPPU also said that a preliminary investigation found that Indonesian App developers had been required to use Google's payment system since June 1 this year, which charged 15 to 30 per cent commission.

According to KPPU, the charge is much higher than for other services, which typically cost less than 5 per cent. KPPU also said that if developers do not comply with Google's requirement, their App could be removed from the Google App Store. Google controls 93 per cent of Indonesia's App distribution market, according to KPPU.

Google has yet to comment.

In recent years, critics have accused Google and Apple of charging too much for their mobile app stores. Data show that developers pay billions of dollars to Apple and Google each year, highlighting the monopoly power of the two companies.

In addition to Indonesia, a number of antitrust authorities around the world, including the European Union, have launched monopoly investigations into Google and Apple App Store. Google has previously said that the commission charged to developers will help keep Android free and provide developers with tools and platforms to serve billions of consumers around the world.

KPPU's investigation will last for 60 days. An agency official said that if Google was found to have violated the antitrust law, it could be fined up to 50 per cent of its net profit during the period of the violation.