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Indonesia fines Google for monopolistic, unfair practices in Play services
The antitrust agency ordered Google to immediately cease enforcing the mandatory use of its Google Play Billing and to allow developers to introduce alternative billing options next to Google Play's billing system.
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In collaboration with bug bounty platform HackerOne, the Google Play Security Reward Program will compensate hackers who can find bugs in 13 Google Play apps including Tinder, Duolingo, Dropbox, Snapchat and Headspace. (Shutterstock/File)
T
he competition watchdog has fined Google Rp 202.5 billion (US$12.4 million) for engaging in monopolistic and unfair business practices related to its payment system services on Google Play Store, its software distribution platform.
The three-member panel of the Business Competition Supervisory Commission (KPPU) ruled on Tuesday that the United States tech giant’s mandatory use of Google Play Billing for in-app purchases violated the country's competition law, restricting market and technological development in the country, according to a KPPU statement.
Google Play Billing is required for developers offering in-app purchases in digital products and services distributed in the Google Play Store, according to the tech giant’s website.
The antitrust agency ordered Google to immediately cease enforcing the mandatory use of its Google Play Billing and to allow developers to participate in user choice billing (UCB) with a service fee reduction of at least 5 percent for a year after the ruling becomes legally binding.
UCB allows developers to offer an alternative billing option next to Google Play's billing system.
“The mandatory use of the Google Play Billing system has eliminated alternative payment processing options that developers and consumers previously had access to,” panel member Eugenia Mardanugraha said during the hearing.
The billing system had reduced developers’ earnings as they led to a reduction in users, user losses, high migration costs and difficulties transferring user data, among other issues, she said.
