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Google faces Indonesian antitrust probe, at risk of $1.67 m fine
The Business Competition Supervisory Commission (KPPU) will undertake a preliminary investigation into Google in the next 60 days, on suspicion of monopoly, product tying, abuse of dominant position and discrimination, all through the mandatory use of Google Pay Billing (GPB).
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Google's logo is pictured above the entrance to the company's offices in London on Jan. 18, 2019. (AFP/Ben Stansall)
G
oogle and its subsidiary in Indonesia could potentially be fined a maximum of Rp 25 billion (US$1.67 million) if they are proven to have violated the country’s Antitrust Law, due to practicing the mandatory use of Google Pay Billing (GPB).
The Business Competition Supervisory Commission (KPPU) announced its plan to undertake a preliminary investigation into Google over the next 60 days or so, on suspicion of monopoly, product tying, abuse of dominant position and discrimination, all through the use of GPB.
The antitrust agency underscored that such practices were potentially in violation of Law No. 5/1999 on the prohibition of monopolistic practices and unfair business competition, with a maximum fine of Rp 25 billion, according to article 47 paragraph 2 letter g of the law.
Edmon Makarim, dean of the University of Indonesia’s Law School, explained that this law was in place to ensure a fair playing field.
“The goal [of the antimonopoly regulation] is to open equal business opportunities. Whenever there are business opportunities, they must be opened for newcomers, and more established players are not allowed to obstruct the competition,” Edmon explained on Friday.
“It wouldn’t be a problem if the monopoly was born through ‘naturalia’ or the law. However, if [the competition] is decided by the market, then the market needs to be regulated to ensure fairness. For the technology [sector], the competition is decided by the market,” he added, explaining that Google’s conduct of restricting market entries could be viewed as a monopoly attempt.
Global antitrust cases against Google have plagued the company in the past few years, with the most recent happening in the European Union, where the court handed down a penalty of $4.12 billion, making it the largest antitrust fine ever given out by the European Commission.
