Indonesia Investigates Google Play Store For Alleged Anti-Competitive Practices


The Business Competition Supervision Commission (KPPU) announced an investigation into Google in Indonesia for alleged unfair business practices to local users. In addition, Google is accused of blaming their dominant position in the market as well as discrimination in the Play Store application market.

Among the practices seen as unfair is mandating the use of Google Play Billing in in-app purchases (IAP). Google takes a cut of 15-30% from each payment compared to 5% taken by other payment systems in Indonesia.

According to the KPPU, Google holds 93% of the device application market in Indonesia and therefore the need to use their payment system is seen as an abuse of their dominant position.

With the investigation by the KPPU, Indonesia became another country after South Korea and the European Union to investigate Google's practices seen as anti-competitive.

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