What unfair business practices is Google accused of in Indonesia?

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Google Accused of Unfair Business Practices in Indonesian App Distribution

Indonesian authorities are investigating Google for alleged abuse of its dominant market position through conditional sales and discriminatory practices in the distribution of digital applications. Specifically, the probe centres on the requirement for developers to use Google's payment system for purchases made through the Google Play store, with accusations that this practice disadvantages developers by imposing higher service fees compared to alternative payment methods.
Imposition of Google's Payment System

The Indonesian anti-trust agency suspects that Google has leveraged its dominant position in the app distribution market to enforce the use of its own payment system for all transactions within the Google Play store. This alleged stipulation is a key focus of the investigation, which aims to determine if it constitutes an unfair business practice.
Discriminatory Service Fees

Third-party developers offering their applications on Google Play are reportedly subjected to service fees ranging from 15 to 30 per cent. This rate is significantly higher than the five per cent service fee charged by other payment systems, suggesting a potential financial disadvantage for developers who are compelled to use Google's integrated payment solution.
Sanctions for Non-Compliance

A critical aspect of the accusation is that developers cannot refuse to comply with Google's payment system requirement due to the potential for sanctions. According to the anti-trust agency, Google can penalise developers by removing their applications from the Google Play store and preventing them from issuing necessary updates, thereby creating a significant barrier to market access and continued operation.

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What unfair business practices is Google accused of in Indonesia?

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