Taipei said Monday it had fined Google Tw$1,000,000 ($34,600) for refusing to grant customers a seven-day trial period when they download apps for their cell phones.
Taiwan's consumer protection law stipulates that consumers are entitled to a seven-day trial period after purchasing any products via Internet, including cell phone software applications.
The capital city's government found that Google and Apple had violated the law and on June 8 ordered them to alter their trading rules.
"Google refused to change its rules," Betty Chen, the head of a consumer protection at the city government, said. Apple changed its rules.
Under the terms of service for Google's Android Market, consumers are allowed only 15 minutes to decide whether they want a refund after buying an app online.
In reaction, Google suspended the sale of its paid apps to Taiwan consumers, according to Chen, who described the move as "unfriendly".
No Google Taiwan officials were immediately available for comment.
Chen said Google plans to send officials from the United States to Taiwan on Thursday over what she said was the company's violation of the island's law.
Officials said they may impose a similar fine if Google does not make the change by July 1.