Google faces an antitrust lawsuit over extravagant app store fees.
37 US states to sue Google over policies on its Android app store, Google Play.
The Google antitrust lawsuit 2021 accused the tech giant of using “monopolistic leverage” to generate large profits from purchases with its own store. Another accusation made was that Google has bought off its competitors.
Google in response to the lawsuit made the statement that there are rival app stores for Android devices, apps can also be directly downloaded from the developer’s website.
The states include New York, Tennessee, and North Carolina, as well as Washington DC. The states are of the opinion that Google takes a commission on the purchases made in the Google play store, which can be up to 30% in line with Apple’s App Store policies and the other rival stores such as Amazon and Microsoft Xbox.
“Google Play is not fair play,” Utah Attorney General Sean Reyes said in a statement.
“It must stop using its monopolistic power and hyper-dominant market position to unlawfully leverage billions of added dollars from smaller companies, competitors, and consumers beyond what should be paid.”
In response, Google’s senior head of policy, Wilson White, termed the actions as rather “Strange”.
“We understand that scrutiny is appropriate, and we’re committed to engaging with regulators,” he commented.
“But Android and Google Play provide openness and choice that other platforms simply don’t.”
The tech giant’s app store policies are met with increased scrutiny. The same happened with Apple in May when the UK’s Competition and Markets Authority launched an investigation into Apple’s App store policies.
Epic Games, the studio behind the hit game Fortnite, started legal action against both Google and Apple citing competition rules back in January.
A study by Facebook in December revealed that the majority of the apps used by people in the US were either made by Apple or Google, The Verge reported.