Indonesia’s antitrust authority has imposed a fine of approximately 202 billion rupiah ($12.4 million) on Google for engaging in what it termed as unfair business practices through its Google Play Store payment system. The ruling marks a significant development in the country’s efforts to regulate dominant global tech companies operating in its fast-expanding digital economy.

According to a Reuters report, the Indonesia Competition Commission (KPPU) launched its investigation into Alphabet Inc.’s Google in 2022, following allegations that the company had abused its market position. According to the findings, Google required app developers in Indonesia to use its Google Play Billing system, which charged fees as high as 30%. Developers who failed to comply risked having their applications removed from the Play Store.

The commission ruled that these practices violated Indonesia’s anti-monopoly laws by reducing developers’ earnings and discouraging user engagement. The panel also highlighted Google’s overwhelming dominance, noting the tech giant controlled 93% of the market in a nation of 280 million people.

“The imposed billing system caused harm to developers by diminishing their potential user base and revenue,” the panel stated during the hearing.

In response, a Google spokesperson expressed disappointment with the decision and confirmed the company’s intention to appeal. “Our current practices foster a healthy, competitive Indonesian app ecosystem,” the spokesperson said, emphasizing Google’s commitment to complying with local laws.

The tech company noted that it had recently introduced options for developers to offer alternative billing systems to users, a move intended to address concerns over its payment structure.

This is not the first time Google has faced regulatory scrutiny for its business practices. Over the past decade, the European Union has fined the company more than €8 billion ($8.3 billion) for anti-competitive conduct in areas such as price comparison services, the Android mobile operating system, and its advertising platform.

Indonesia’s ruling underscores the growing global pressure on major tech firms to adhere to fair competition practices and adapt to the regulatory landscapes of the countries in which they operate. As one of the largest digital economies in Southeast Asia, Indonesia has become a focal point for these efforts.

The ruling comes as Indonesia continues to evaluate measures to ensure a competitive environment for local developers and consumers alike. The fine against Google is expected to serve as a warning to other tech giants with substantial market influence in the region.

Google’s appeal process is likely to draw significant attention as the case unfolds, potentially setting a precedent for similar regulatory actions in other emerging markets.