US attorneys general are once again targeting Google with an antitrust lawsuit, this time accusing the tech giant of abusing its power over app developers through the Google Play Store on Android.
See also: Google and Amazon under investigation for fake product reviews
This is the fourth antitrust lawsuit against Google (by the US government) in the last year.
also been hit with Apple over its App Store has similar lawsuits . The Apple App Store has been embroiled in legal disputes, and the company has been called upon to explain whether and to what extent it unfairly charges app developers and whether it favors its own apps over rivals.
Google is now facing a similar challenge. Attorneys general from 36 states and the District of Columbia filed an antitrust lawsuit against Google on Wednesday. The attorneys represent states including California, Colorado, Iowa, Nebraska, New York and North Carolina, among others.
See also: Court dismisses FTC antitrust lawsuit against Facebook
The plaintiffs allege that Google has used anticompetitive tactics to extract a 30% commission from consumers who purchase subscriptions and digital content on their Android phones. According to the antitrust lawsuit, app developers have no choice but to use Google’s software to distribute their apps (in part because Google has targeted competing app stores). Meanwhile, consumers also have no choice because Android is the dominant operating system.
According to the plaintiffs, the Google Play Store distributes more than 90% of Android apps in the U.S., while no other Android store has more than 5% market share. In fact, prosecutors say Google tried to “buy out” Samsung, the leading Android phone maker, by offering it incentives to turn its Galaxy app store into a “white label” for the Play Store. Google has also blocked previous attempts by Amazon to use its own app distribution store for Android.
“Google’s enduring monopoly power in the distribution of Android applications is not based on sound competitive criteria,” the lawsuit says.
In addition to the latest antitrust lawsuit, Google is facing a lawsuit from the Department of Justice and several U.S. states. According to the lawsuit, Google used exclusive contracts to secure default status for its apps on devices from manufacturers that used the Android operating system. It is also facing a lawsuit over its advertising practices.
See also: Google: Removes popular Android apps that stole Facebook credentials
In the latest lawsuit, the plaintiffs say Google's anti-competitive practices are harming consumers. Google has no incentive to offer a better service, and no other developer or app store has the channels to reach as many people.
“Rather than simply producing a better app distribution experience, Google is putting up barriers to protect its monopoly power and increase its pro-competitive revenues from the Google Play Store and Google Play Billing,” the lawsuit states.
The plaintiffs say they seek “to restore competition and prevent Google from similar behavior in the future.”
Source: CNBC
