Google Faces Major Multi State Antitrust lawsuit for Google Play fees

Google is undoubtedly the most calming cool tech giant if ever compared to its relatives like Amazon and Facebook.

But there seems to be a little dark spot in the destiny of google repo. Read here to know more about what’s the recent problem Google has created for itself lately.

What’s the latest news?

Google has a new multi-state counter-trust lawsuit in the US, which denounces the technology giant as a stifler of competition by using its market power. The bipolar coalition of states claims that Google uses ‘misleading’ security warnings to keep consumers and developers in Google Play’s mounted app garden. 

Who filed the lawsuit?

On Wednesday, three dozen states and the District of Columbia filed an antitrust complaint against Alphabet Inc.’s Google, arguing that the company’s Google Play app store constitutes a monopoly. Software developers have blamed the corporation for enforcing strict restrictions and taking a significant percentage of all financial transactions made through their apps. On Wednesday, a consortium of 36 states and the District of Columbia charged Google, alleging that its mobile app store exploits its market position and imposes onerous requirements on software developers, adding to Google’s legal woes. The litigation is being co-led by New York Attorney General Letitia James, as well as the attorneys general of Tennessee, North Carolina, and Utah. 

The claim is the company’s fourth state or federal antitrust case after October, but the first one that focuses on the company’s profitable app store. The lawsuit was brought in federal court in the Northern District of California by Utah, North Carolina, New York, and Tennessee.

What’s the complaint about?

Developers of mobile apps have expressed dissatisfaction with Google’s requirement that they utilise its own system for some payments within their products. Many transactions are subject to a 30% commission, which the developers claim pushes them to pay greater costs for their services.

Google Faces Major Multi State
Google Faces Major Multi State

Google acquired charge of the distribution of mobile apps in its Android smartphone operating system, according to the complaint. The Google Play Store’s market share — which is well over 90% — poses no genuine challenges as a result of Google’s monopolistic behaviour, and market forces cannot impose influence on its supra-competitive payments,” according to the complaint. This complaint is bigger than you think, it’s 144 pages long. 

All whilst during this lawsuit if Google’s monopoly,  Another big rich bull Apple is hiding under the carpet. Google, like Apple, consolidates all app payment processing under its own Google Play Billing service and gets rich: a 30% share of all payments. Much of the accusations levelled here could — and almost certainly will — be levelled at Apple, which has a far greater sway over its own app market. Google doesn’t have a dedicated app for iMessage that keeps consumers locked in in the same way. 

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“Not only has Google acted in an illegal way to prevent potential competitors from trying to compete with its Google Play Store, but it has also made money by inappropriately locking app developers and consumers into its payment processing system and then charging exorbitant extra costs,” said Attorney General Karl Racine of the District of Columbia.

Google’s statement over the accusations

Google did not instantly react to a plea for a lawsuit, but in its answer to the Epic case and other instances, it has vehemently defended the way it administers its Play store. However, in some way or the other,  Google had to respond. In response to the case, Google stated on its blog, “It’s interesting that a group of state attorneys general opted to launch a lawsuit targeting a system that gives more openness and choice than others.” “This action is similar to one filed by Epic Games, a prominent app developer that has taken advantage of Android’s openness by releasing its Fortnite app outside of Google Play.”

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