36 states, DC sues Google for alleged antitrust violations in its Android app store


In addition to Wednesday’s lawsuit, Google also faces a lawsuit filed by the Justice Department and 14 states in October, which focused on Google’s efforts to dominate the mobile search market; one of 38 States and territories filed in December, also research-oriented; and a third lawsuit by 15 states and territories linked to Google’s power over ad technology.

The new case: wednesday costume is the search giant’s latest challenge to force all app developers who use its Google Play Store to pay a 30% commission on sales of digital goods or services. The change is expected to take effect in September.

The case reflects a case filed against Google by Fortnite-make Epic Games last August, and a barrage of antitrust class actions filed on behalf of app developers and consumers who allege Google’s policies have driven prices up. .

The bipartisan group of state attorneys general filed the case Wednesday in the same court as the other app store lawsuits. He will be heard by the same judge, James Donato, appointed by Obama, who has scheduled a trial in Epic’s lawsuit against Google for April 2022.

The lawsuit is the first to challenge Google’s control of the mobile app store market, although antitrust authorities in the UK and Australia have also opened investigations into the search giant’s dominance in the market. sector.

Background: Google Play Store is the default app store on Android phones, although users of these devices can also download apps from stores operated by companies like Amazon or Samsung, or even install them directly from from other random sources. This differs from setting up on iPhones, where Apple’s App Store is the only source where users are allowed to get apps.

While Google has long had a policy that app developers must use its payment system for purchases made through the Play Store, the company has only loosely enforced the rule. Last year, the company announced that it would start enforcing its payment rules next September.

This sparked an uproar from companies such as Netflix, Spotify and Match Group, who bypassed Google’s commissions.

Google has sought to allay some of the discontent by lowering commissions to 15% on the first million dollars in sales, mirroring a small business program introduced by Apple in 2020. The Android maker also announced last month a program allowing developers of video, audio and e-book services also pay a 15 percent commission on sales.

Google’s defense: At a Senate hearing in April, Google said its commissions are in line with what others in the industry charge for and help fund developer tools and updates to the Android ecosystem. Android also allows users to use multiple app stores or download apps directly from a developer’s website, a technique known as sideloading.

“If a developer feels that the value proposition of Google Play is not adequate, there are a number of other ways they can distribute their apps,” said Wilson White, Google’s public policy manager for Android and Google Play.