Analysis Of Competition Law On Alleged Violations Of Article 17 And Article 25 Of Law Number 5 Of 1999 By Google LLC In The Application Of The Google Play Billing System

Feb 27, 2025 by ADMIN 170 views

Analysis of the Legal Competition on Alleged Violations of Article 17 and Article 25 of Law Number 5 of 1999 by Google LLC in Applying the Google Play Billing System

In today's highly competitive digital landscape, the issue of monopoly practices and abuse of dominant positions is a pressing concern. The case of Google LLC's alleged violations of Article 17 and Article 25 of Law Number 5 of 1999, specifically in the application of the Google Play Billing System, has sparked intense debate and scrutiny. This article aims to provide an in-depth analysis of the competition law implications of Google's actions and the potential consequences for the company, application developers, and consumers in Indonesia.

The Role of KPPU in Regulating Business Competition

The Business Competition Supervisory Commission (KPPU) plays a crucial role in regulating business practices that have the potential to harm competition. Established under Article 30 of Law Number 5 of 1999, KPPU has the authority to determine guidelines related to each article in the law, including Article 17 and Article 25. These guidelines provide a framework for identifying and addressing monopoly violations and unfair competition practices. In this context, KPPU's approach is guided by a law enforcement approach that includes both per illegal and rule of reason, relying on economic analysis to determine the impact of business practices on competition.

The Alleged Monopoly Practice by Google LLC

Google LLC's alleged monopoly practice is rooted in a policy that requires applications on the Google Play Store to use the Google Play Billing System payment system. This policy has significant implications for application developers, as they are forced to use an alternative payment option that incurs service fees between 15% to 30% of each transaction. Failure to comply with this policy can result in severe consequences, including the deletion of applications from the store and the prevention of application updates. This can have a detrimental impact on developers, who may struggle to maintain their applications and compete with other developers who are able to use alternative payment options.

Case Analysis Through a Legal Perspective

From a legal perspective, testing of alleged violations is a complex process. KPPU must prove that Google LLC's actions have caused losses to competitors and consumers, as well as analyzing the impact of the policy on the market as a whole. Meanwhile, Google LLC is expected to provide a strong argument to defend themselves and explain that their policies have legal reasons, such as transaction security and better user experience. A case study in other countries, such as South Korea, shows that Google has faced sanctions due to similar policies that are considered to violate competition law. This case can serve as a reference for KPPU in determining further legal steps against Google LLC.

The Importance of Healthy Business Competition

Healthy business competition is essential for encouraging innovation and providing benefits to all parties in a digital ecosystem. The application of the Google Play Billing System has the potential to stifle competition and limit the ability of application developers to innovate and compete. By analyzing the competition law implications of Google's actions, this article highlights the importance of ensuring that business practices do not harm competition and that all parties have the opportunity to compete fairly.

Conclusion

In conclusion, the analysis of the alleged violations of Article 17 and Article 25 of Law Number 5 of 1999 by Google LLC in applying the Google Play Billing System has significant implications for the company, application developers, and consumers in Indonesia. The judicial process will require strong evidence and in-depth analysis to determine whether the practice carried out by Google LLC violates the law. The final decision will have a significant impact on the digital ecosystem in Indonesia and will set a precedent for future cases involving competition law.

Recommendations

Based on the analysis, the following recommendations are made:

KPPU should conduct a thorough investigation into Google LLC's alleged monopoly practice and determine whether the policy violates Article 17 and Article 25 of Law Number 5 of 1999.
Google LLC should provide a strong argument to defend themselves and explain that their policies have legal reasons, such as transaction security and better user experience.
Application developers should be aware of the potential consequences of using the Google Play Billing System and should explore alternative payment options to avoid incurring service fees.
Consumers should be aware of the potential impact of the Google Play Billing System on competition and should support application developers who are able to offer alternative payment options.

Future Directions

The analysis of the alleged violations of Article 17 and Article 25 of Law Number 5 of 1999 by Google LLC in applying the Google Play Billing System has significant implications for the digital ecosystem in Indonesia. Future research should focus on the following areas:

The impact of the Google Play Billing System on competition and innovation in the digital ecosystem.
The role of KPPU in regulating business practices that have the potential to harm competition.
The potential consequences of Google LLC's alleged monopoly practice on application developers and consumers in Indonesia.

By analyzing the competition law implications of Google's actions, this article highlights the importance of ensuring that business practices do not harm competition and that all parties have the opportunity to compete fairly.
Frequently Asked Questions (FAQs) on the Analysis of the Legal Competition on Alleged Violations of Article 17 and Article 25 of Law Number 5 of 1999 by Google LLC in Applying the Google Play Billing System

Q: What is the main issue with Google LLC's alleged monopoly practice?

A: The main issue is that Google LLC's policy requires applications on the Google Play Store to use the Google Play Billing System payment system, which incurs service fees between 15% to 30% of each transaction. This can have a detrimental impact on application developers who are forced to use this payment system.

Q: What are the potential consequences of Google LLC's alleged monopoly practice?

A: The potential consequences include the deletion of applications from the store and the prevention of application updates, which can have a significant impact on application developers and consumers in Indonesia.

Q: What is the role of KPPU in regulating business practices that have the potential to harm competition?

A: KPPU has the authority to determine guidelines related to each article in the law, including Article 17 and Article 25. These guidelines provide a framework for identifying and addressing monopoly violations and unfair competition practices.

Q: What is the significance of the case study in South Korea?

A: The case study in South Korea shows that Google has faced sanctions due to similar policies that are considered to violate competition law. This case can serve as a reference for KPPU in determining further legal steps against Google LLC.

Q: What are the potential implications of the Google Play Billing System on competition and innovation in the digital ecosystem?

A: The Google Play Billing System has the potential to stifle competition and limit the ability of application developers to innovate and compete. This can have a negative impact on the digital ecosystem in Indonesia.

Q: What are the potential consequences of Google LLC's alleged monopoly practice on application developers and consumers in Indonesia?

Q: What is the importance of healthy business competition in the digital ecosystem?

A: Healthy business competition is essential for encouraging innovation and providing benefits to all parties in a digital ecosystem. The application of the Google Play Billing System has the potential to stifle competition and limit the ability of application developers to innovate and compete.

Q: What are the potential recommendations for KPPU, Google LLC, application developers, and consumers in Indonesia?

A: The potential recommendations include:

KPPU should conduct a thorough investigation into Google LLC's alleged monopoly practice and determine whether the policy violates Article 17 and Article 25 of Law Number 5 of 1999.
Google LLC should provide a strong argument to defend themselves and explain that their policies have legal reasons, such as transaction security and better user experience.
Application developers should be aware of the potential consequences of using the Google Play Billing System and should explore alternative payment options to avoid incurring service fees.
Consumers should be aware of the potential impact of the Google Play Billing System on competition and should support application developers who are able to offer alternative payment options.

Q: What are the potential future directions for research on the analysis of the legal competition on alleged violations of Article 17 and Article 25 of Law Number 5 of 1999 by Google LLC in applying the Google Play Billing System?

A: The potential future directions for research include:

The impact of the Google Play Billing System on competition and innovation in the digital ecosystem.
The role of KPPU in regulating business practices that have the potential to harm competition.
The potential consequences of Google LLC's alleged monopoly practice on application developers and consumers in Indonesia.