Indonesia has launched an anti-trust investigation into Google over the tech firm's insistence that its payment system be used for purchases from its app store, authorities said Thursday, accusing it of unfair business practices.
The US internet giant has been under legal scrutiny in a number of countries over its stipulation that its billing system be used by all buyers on Google Play.
Authorities in Jakarta said in a statement they suspected "Google has abused its dominant position by imposing conditional sales and discriminatory practices in digital application distribution in Indonesia".
Google Play is the largest app distribution platform in Indonesia, a country of around 270 million people.
Third-party developers offering their apps on Google Play are charged a 15 to 30 percent service fee, higher than the five percent imposed by other payment systems, according to an initial probe by the nation's anti-trust agency.
"The respective developers cannot refuse the obligation because Google can impose sanctions by removing their applications from the Google Play store and preventing them from making updates to their applications," the agency said.
Google Indonesia said on Friday that it would work with the Indonesian authorities "to demonstrate how Google Play supports developers".
It added that since early this month, it has started a pilot billing system, allowing an alternative payment system alongside the one used on Google Play.
The American multinational has faced a barrage of legal cases in the United States, Europe and Asia based on similar accusations.
Google has also faced claims that it unfairly forced its search engine and Chrome internet browser on phone makers using the Android operating system.
On Wednesday, the European Union's second-highest court ruled that "Google imposed unlawful restrictions on manufacturers of Android mobile devices".
The court upheld the EU's record fine of more than four billion euros ($4 billion) against Google
That case was the third of three major cases brought against Google by the EU's competition czar Margrethe Vestager, whose legal challenges were the first worldwide to directly take on Silicon Valley tech giants.
South Korea fined Google nearly $180 million last year for abusing its dominant market position in a similar case regarding the Android system.
EU wants tough rules on 'internet of things' products
Brussels (AFP) Sept 15, 2022 –
The European Commission wants to impose tough rules on connected objects such as "smart" fridges or virtual assistants to ensure companies guarantee better defenses against cyberattacks, according to draft EU legislation unveiled on Thursday.
"Computers, phones, household appliances, virtual assistance devices, cars, toys… each and every one of these hundreds of million connected products is a potential entry point for a cyberattack," said Internal Market Commissioner Thierry Breton.
"And yet, today, most hardware and software products are not subject to any cybersecurity requirements," he added.
The draft regulation will be negotiated over several months by MEPs and the bloc's 27 member states.
Under its proposed rules, products and software that make up the so-called "internet of things" would only be allowed on the European market if they met the EU's security criteria.
The text also proposes an obligation for transparency on possible flaws or incidents and a certification that basic requirements of cybersafety have been met.
Companies will risk fines of up to 15 million euros ($15 million) or 2.5 percent of their turnover if infringements are found.
According to the proposal, member states would be responsible for the proper application of the rules and would be empowered to pull products from the market.
The commission hopes to make this new legislation an international reference beyond Europe, repeating the success of the "CE" labelling system that affirms a good's conformity with European health and safety standards.
The annual cost of cybercrime was estimated at 5.5 trillion euros worldwide in 2021, according to the EU executive.
