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Google faces new anti-trust lawsuit over App Store

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Google, the mega tech company was being sued by 37 US states because of the policies on its Android app store, Google Paly.

As per the lawsuit the company has used “monopolistic leverage” to create huge profits from purchases made within its own store.

Moreover, it claimed that Google had bribed its competitors. 

The firm said that there are several other rival app stores for Android users. It further stated that apps can also be downloaded directly from the developer’s own website.

About 37 states are involved in the legal action, including New York, Tennessee and North Carolina, as well as Washington DC.

The states are criticising the commission charged by google on all google app purchases.

This commission charged can be up to 30% in line with Apple’s app store or other rivals such as Amazon and Xbox.

Its gross revenue in 2020, from Google play, was $36.8bn (£26.7bn), as per reports.

Meanwhile, Tim Cook, the CEO of Apple claimed that he didn’t know how profitable the App Store is as a separate entity.

The tech giant says that 97% of creators do not pay it any “service fees” at all. This is because they are not selling digital products within their apps.

Google’s senior head of public policy, Wilson White, defined the action as “strange” in a blog.

 

“We understand that scrutiny is appropriate, and we’re committed to engaging with regulators,” he wrote.

“But Android and Google Play provide openness and choice that other platforms simply don’t.”

But the app store’s policies are facing increasing scrutiny.

In May, the UK’s Competition and Markets Authority investigated the policies of Apple’s app store. 

A study commissioned by Facebook in December suggested that the majority of apps used by people in the US were made by either Apple or Google, reported The Verge. 

 

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