Indonesia Bans Google Phone Sales After Blocking Apple’s iPhone 16

Indonesia has banned the sale of Google phones just days after blocking the Apple iPhone 16. This move is part of the country's ongoing efforts to regulate smartphone sales and enforce compliance with local regulations. The restrictions on these major tech brands could significantly impact the market and consumers, raising concerns about accessibility and competition in Indonesia's technology sector.

Indonesia announced a ban on the sale of smartphones made by Alphabet's Google due to regulations mandating the use of locally manufactured components. This decision follows the recent prohibition on sales of Apple's iPhone 16 for the same reason. The sales of Google Pixel phones were halted because the company failed to comply with local regulations that require at least 40% of components in smartphones sold domestically to be produced locally.

"We are enforcing these regulations to ensure fairness for all investors in Indonesia," stated Febri Hendri Antoni Arief, spokesperson for the industry ministry, on Thursday. "Google's products have not complied with the requirements we established, so they cannot be sold here." Google confirmed that its Pixel phones are not officially distributed in Indonesia.

Febri noted that consumers could purchase Google Pixel phones from abroad, provided they pay the relevant taxes, and mentioned that the government might consider disabling any illegally sold devices.

This ban comes just a week after Indonesia prohibited the sale of the iPhone 16 for failing to meet local content regulations. Companies typically increase their use of local components by partnering with domestic suppliers or sourcing parts within the country. Google and Apple are not among the leading smartphone manufacturers in Indonesia, with Chinese company OPPO and South Korean firm Samsung being the top two producers in the first quarter of 2024, according to research firm IDC.

With a large and tech-savvy population, Indonesia is a crucial market for technology investments. Bhima Yudhistira, director of the Center of Economic and Law Studies think tank, described the move as "pseudo" protectionism that harms consumers and undermines investor confidence. "This creates a negative sentiment for investors looking to enter Indonesia," he added.

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Source: Reuters‍