Indonesia says it will investigate Google over possible unpaid taxes. And as Fred Katayama reports, a Japanese report says Google and Apple are hindering competition in apps.
Google's in hot water in Asia. An Indonesian senior finance official says the country's tax office will investigate the company for suspected unpaid taxes. He said Google refuses to cooperate with its request to examine the company's tax reports. A Google Indonesia spokesman contends the company is fully cooperating. The tax office believes some U.S. Internet companies owe income and value added tax on billions of dollars of revenue they make off advertising in Indonesia. Officials say Yahoo, Twitter and Facebook have complied with their request to hand over tax reports of their Indonesian offices. Over in Japan, the trade ministry's advisory panel reported that Google and Apple may have violated Japan's anti-monopoly law. It said their moves - to restrict payment methods developers can accept and prevent the use of virtual currencies between apps - undermine competition in the market for smartphone apps. Google and Apple officials were not immediately available for comment. Google has faced similar issues in Europe. The EU has accused Google of using its Android mobile operating system to block competitors. And in January, it agreed to pay back taxes for the profit it made in Britain. And the EU has ordered Apple to pay Ireland billions of dollars in back taxes.