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 Google suspected of monopolizing in Indonesia, KPPU conducts trial.

Google suspected of monopolizing in Indonesia, KPPU conducts trial.

Who doesn't know Google, the most widely used search engine in the world also has an office in Indonesia. But news emerged about the alleged monopoly committed by Google. The Business Competition Supervisory Commission (KPPU) held a hearing on alleged unfair business competition by Google via the Google Play Billing (GPB) System.

Google Play Billing is a transaction method for purchasing digital products and services that are mandatory in applications distributed through the Google Play Store. The Google Play Billing service has a fee of 15% to 30% of the product purchase price to the application developer.

This trial started because previously an investigation was carried out by KPPU against Google based on the results of the Commission Meeting on September 14, 2022, after continuing the research results of the KPPU Secretariat. The new trial was officially held after 2 years.

The KPPU investigation team presented a report on alleged violations by Google which was a summary of 40 investigation documents.

According to KPPU's written statement, Google is suspected of violating Articles 17, 19 Letter (a) and (b), as well as Article 25 Paragraph (1) Letter (a) and (b) of Law Number 5 Year 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition.

KPPU's allegations are that there is a monopoly of application distributors on Google Play, a single payment system, and very high commission deductions for developers.

With Google regulations requiring app developers to distribute their apps via the Google Play Store using the Google Play Billing System with the threat of sanctioning the removal of apps from the Google Play Store if they do not comply.

This clearly benefits Google and pressures application developers. Based on KPPU research data, Google Play Store provides a large distribution in the Indonesian market, which is up to 93%.

Many developers also say that Google Play Store is indeed a prima donna that is difficult to find an alternative because the majority of users in Indonesia use this application.

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