36 US states sue Google over app store practices

Washington, July 8

As many as 36 US states and Washington DC have filed a lawsuit against Google, alleging the search engine giant’s control over its Android app store violates anti-trust laws.

The lawsuit alleges that through a series of exclusionary contracts and other anti-competitive conduct in the Google Play Store, Google has deprived Android device users of robust competition that could lead to greater choice and innovation, and significantly lower prices for mobile apps.

New York Attorney General Letitia Ann James and the coalition — co-led by the attorneys general of Utah, North Carolina, and Tennessee — also accuse Google of requiring app developers selling in-app digital content through apps purchased via Google’s Play Store to use Google Billing as a middleman, forcing app consumers to pay Google’s commission — up to 30% — indefinitely.

“Google has served as the gatekeeper of the Internet for many years, but recently, it has also become the gatekeeper of our digital devices — resulting in all of us paying more for the software we use every day,” James alleged.

“Once again, we are seeing Google use its dominance to illegally quash competition and profit to the tune of billions. Through its illegal conduct, the company has ensured that hundreds of millions of Android users turn to Google, and only Google, for the millions of applications they may choose to download to their phones and tablets,” she said. “Worse still, Google is squeezing the lifeblood out of millions of small businesses that are only seeking to compete. We are filing this lawsuit to end Google’s illegal monopoly power and finally give voice to millions of consumers and business owners,” James said.

The lawsuit alleges that Google imposes technical barriers that strongly discourage or completely prevent third-party app developers from distributing apps outside the Google Play Store. — PTI