Google may have used influence to curb Galaxy Store
Joe Hindy / Android Authority
TL; DR
- Information about Google’s antitrust lawsuits suggests the company may have been trying to stem the growth of the Samsung Galaxy Store.
- Allegedly, Google was offering Samsung large lump sums in cash and partnership benefits to help keep the Play Store dominant.
- In particular, Google did not offer revenue sharing from Samsung as that would show how lucrative the Play Store is for Google.
Yesterday, 36 states and Washington, DC filed a joint antitrust lawsuit against Google. We’ve already covered the news here and here in detail. So be sure to do some research if you haven’t already.
Interestingly, this suit brings out some information that we hadn’t heard before (via ArsTechnica). Apparently, the lawsuit focuses mainly on the Play Store commissions prescribed by Google, which used to be a flat 30% for everyone. However, the lawsuit also focuses on alleged attempts by Google to use its influence to thwart the efforts of rival app stores on Android.
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Most egregiously, the lawsuit alleges that Google allegedly offered Samsung “countless benefits and concessions to keep Samsung’s Galaxy Store from expanding”. That would be a bold move by Google, but not surprising given Samsung’s dominance in the smartphone market. Since there are millions of Samsung phones and the Galaxy brand is essentially synonymous with Android for many consumers, their store posed a major threat to the Play Store.
Google is reportedly trying to stop the Galaxy Store’s success
Google allegedly offered Samsung exclusive access to apps and games, promoted events in the Play Store and lucrative YouTube commercials. The suit even claims that Google may have offered to “white label” the Play Store with the Galaxy Store branding.
Allegedly, large sums of money were also offered. However, this would have been a substitute for revenue sharing on the Play Store, not a bribe. Interestingly, Google probably didn’t want to offer direct percentages as that would show Samsung just how lucrative the Play Store really is.
Well, none of this is illegal. However, if it is true, it suggests that Google doesn’t really believe in its claims that Android is an open platform that anyone can compete on. This information suggests the opposite: if someone does become a competitor to the Play Store, Google will step in and claim its dominance.
It will be very interesting to see what other behind-the-scenes tidbits come out of this antitrust lawsuit.
