Google may soon face lawsuit for allegedly abusing Play Store power
TL; DR
- According to reports, “dozens” of states are suing Google for abuse of control over the Play Store.
- The lawsuit would focus on charges for Android apps and subscriptions.
- A lawsuit could be filed in California within hours.
Google could face another lawsuit over its business practices. Bloomberg Sources say “dozens” of states are about to file a lawsuit accusing Google of abusing its control of the Play Store.
According to reports, the lawsuit focuses on the fees Google charges Android developers for both apps and in-app subscriptions. A lawsuit could be filed in California as early as July 7th (today if you read ahead of time), the sources said.
We asked Google for a comment.
If a lawsuit progresses, it would put significant legal pressure on Google. The company is already dealing with antitrust proceedings because of its dominance in web searches and online advertising – now it would have to fight tough crackdown on alleged abuse of its mobile app platform. The EU has also cracked down on Google for its Android search practices.
See also: The best third-party app stores for Android
Like Apple, Google has grappled with longstanding allegations that it has unfairly exploited the influence of its app portal to impose excessive fees like the 30% cut typically required on purchases. The internet giant recently echoed Apple by reducing its share of app purchases for the first $ 1 million in sales to 15% over the course of a year, theoretically helping small developers without affecting bottom line. However, the move didn’t go into effect until July 1 and may not help Google avoid legal action from states that may have been preparing cases for months.
A lawsuit against Google would please at least some developers. Fourteen days Creator Epic Games sued Google in August 2020 for allegedly violating US antitrust law by forcing app manufacturers to use the Play Store’s payment system in many cases. Should states move forward, they could force Google to loosen its grip and allow these third-party payments. A court win could also lead Google to reduce its cut for all developers, including majors like Epic.
