Dozens of states have sued Google for app store fees

The software developers accused the company of making strict rules and using most financial transactions in its applications.

Washington- On Wednesday, a team of 36 states and the District of Columbia sued Google, accusing its mobile app store of abusing its market power. Imposing aggressive conditions on software developers exacerbating the legal problems of the Internet search giant.

The lawsuit is the fourth state or federal antitrust lawsuit filed against Google since October. But the first federal court for the Northern District of California was headed by the lucrative states of Utah, North Carolina, New York, and Tennessee. A lawsuit was filed.

California: Mobile app developers disagree with how Google forces them to use their own system to make some internal payments. According to developers, the system charges a 30% commission on many transactions, forcing them to charge higher mobile applications on the Android smartphone operating system.

The complaint states for Google for app

Due to Google’s anti-competitive behavior, more than 90% of the Google Play store’s market share has not been subject to any major threats, and market forces cannot put pressure on its excessively competitive commissions.

Google stated on its blog that the lawsuit was “nothing” Unfounded. He said it was strange that the attorney general decided to attack his Play Store instead of Apple’s competitors.

“Android and Google Play provide openness and possibilities that are not available on other platforms,” ​​said Wilson White, Google’s senior director of public policy.

This lawsuit is not intended to help young children or protect consumers. It aims to allow many top app developers to enjoy the benefits of Google Play without paying. Bloomberg News previously reported that the clause and federal regulation. The agency continues to review Google’s business empire, looking for examples of monopolistic behavior.

Over the years, regulators have decided not to take action against Google. Despite Google’s increasingly dominant business and competitors complaining about unfair use of its power.

A large number of anti-Google actions Monopoly complaints mainly focus on search and advertising. Last year, the Ministry of Justice sued the company for illegally defending its monopoly on Internet search advertising.

In a subsequent lawsuit, the Attorney General accused Google of violating regulations on the use of its advertising technology. And separately sued Google for suppressing smaller search services.

Google claims to allow Samsung and Fortnite creator Epic Games and other companies to manage its Android software application store.

FTC and an antitrust lawsuit filed states

The complaint claims that although the Google Play Store is the source of more than 90% Android applications in the United States. No other Android application store has a market share of more than 5%.

Technology giants may study their practices. The US Federal Trade Commission and some states filed antitrust lawsuits against Facebook last year; a judge dismissed the lawsuit last month.

F.T.C also investigated Amazon, and the Department of Justice asked questions about Apple’s business. Epic Games filed an antitrust lawsuit against Apple last year. It was accusing it of abusing market power to charge app developers unfairly high commissions.

It is currently awaiting a ruling next month. Google’s market grows to tens of billions every year, and developers say the company is charging high entry taxes.

Since the software of these two companies controls almost all smartphones in the world, developers have no choice but to stick to their guidelines and pay commissions.

Last year, Google began cracking down on subscription-based application developers such as Netflix and Spotify, who bypassed the company’s payment system to avoid paying commissions on its Play Store.

The company said it would force the company to integrate its payments into Google’s billing system. In September 2021, increasing annual revenues of millions from 30% to 15%. The lawsuit on Wednesday also put pressure on how Apple operates its own app store.


Image courtesy of CHM Tech/YouTube

Micky is a news site and does not provide trading, investing, or other financial advice. By using this website, you affirm that you have read and agree to abide by our Terms and Conditions.
Micky readers - you can get a 10% discount on trading fees on FTX and Binance when you sign up using the links above.