Jakarta. Indonesia’s antimonopoly watchdog KPPU has imposed a fine of Rp 202.5 billion ($13.1 million) on Google LLC and ordered the tech giant to cease enforcing the mandatory use of its Google Play Billing (GPB) System.

KPPU on Wednesday concluded that Google engaged in monopolistic behavior and abused its dominant market position to restrict market access and technological development. The commission found that Google required app developers distributing through the Play Store to use its proprietary GPB System for in-app payments and purchases.

Google defended its policies, arguing that its practices positively contribute to Indonesia’s app ecosystem and foster a healthy, competitive environment. The company also highlighted its alternative billing program, User Choice Billing (UCB), which allows developers to offer additional payment options.

“We are committed to complying with Indonesian laws and will collaborate constructively with KPPU and relevant parties throughout the appeals process,” Google said.

KPPU’s investigation determined that Google Play Store holds a dominant position, being the sole pre-installed app store on Android devices and controlling over 50 percent of the app distribution market. The commission also noted that Google imposes service fees ranging from 15-30 percent and penalizes non-compliant developers by removing their apps from the Play Store or restricting updates.

KPPU stated that mandatory use of the GPB System limited payment options, resulting in decreased app usage, reduced transactions, and increased app prices—rising by as much as 30 percent due to the service fees. Developers also faced challenges in adapting user interfaces and maintaining competitiveness.

In addition to the fine, KPPU ordered Google to abolish the mandatory use of the GPB System and instructed the company to announce the availability of the UCB program to developers. As part of the ruling, developers participating in UCB must receive at least a 5 percent reduction in service fees for one year.

The fine must be paid within 30 days of the decision becoming legally binding. Failure to comply could result in additional penalties of 2 percent per month. Google’s appeal process will determine the next steps for the tech giant in Indonesia.