California Attorney General Rob Bonta on Wednesday announced a lawsuit against Google, accusing the tech giant of violating state and federal antitrust laws through its Google Play store.
The suit alleges Google has specifically violated the federal Sherman Antitrust Act and California’s Cartwright Act, among other statutes, by entering into agreements with smartphone manufacturers to guarantee that Google Play remains the primary, or in some cases the only, app store.
It also alleges that Google violated other state and federal laws by requiring apps distributed on Google Play to use Google Play’s billing system for in-app purchases and refusing to distribute apps on Google Play that use their own billing system.
Furthermore, the suit alleges that through exclusionary agreements with phone manufacturers, Google demands up to a 30 percent cut from third-party app developers for using its Google Play store and in-app purchases. The 30 percent commission is ten times higher than other prices through third-party payment systems, according to Bonta.
“Google has violated the trust of Android phone customers by limiting consumer choice and raking in outrageous commissions on app developers. Android customers are effectively stuck using the Google Play store for apps, where they pay a premium,” Bonta said in a statement. “This anticompetitive behavior also stings consumers by limiting their options. A more competitive app marketplace could open innovation, leading to more choice, better payment processing, improved customer service, and enhanced data security.”
The lawsuit is part of multistate action being brought against Google by Bonta and 36 other attorney generals from all over the U.S.
Google Play Store comes with nearly every Android device and can’t be deleted.
Although customers have the option of bypassing the Google Play store and installing apps directly from developers or purchasing apps from competing marketplaces, prosecutors accuse Google of trying to impede the process through a series “often misleading” safety warnings and permission screens.
In response, in a blog post on Wednesday, Google denied the allegations and called the legal action “meritless.”
“Choice has always been a core tenet of Android. Device makers and carriers can preload competing app stores alongside Google Play on their devices. In fact, most Android devices ship with two or more app stores preloaded. And popular Android devices such as the Amazon Fire tablet come preloaded with a competitive app store and no Google Play store,” Google said.
Google further said that customers do indeed have the option to download apps from developer’s website. Additionally, Google defended its centralized billing system, which according to Google, protects customers from fraud and gives them an easy way to track purchases in one place.
“This lawsuit isn’t about helping the little guy or protecting consumers. It’s about boosting a handful of major app developers who want the benefits of Google Play without paying for it. Doing so risks raising costs for small developers, impeding their ability to innovate and compete, and making apps across the Android ecosystem less secure for consumers,” Google said.
I don’t trust Google or the California Attorney General. That was easy.
+1 – RIGHT ON!!
How true.
With the tracking, the censorship, and the sharing of all our personal information, the Google Play store is the line in the sand that they want to draw for big tech?
Murders, car jacking & armed robberies are sky rocketing so our attorney general is suing Google. What a frigging joke.
@Clay couldn’t agree more. Priorities don’t seem to be in order
The only thing I like about any tech company is Google Maps. Right now I am looking for a new TV. So the smart TVs spy on you. They have cameras and microphones. They send signals back to the manufacturer that tells what you are watching. One site recommended putting a piece of tape over the camera lens because if you turn off its app it will turn back on when you are not looking. You can only imagine how much high tech knows about you. I resent looking for a product on line to find ads for the same product all over facebook five minutes later.
As has been his motivation, he is just trying to buy votes for his recall.. Can’t stand him…
Google has gotten a little too big for it’s britches. The founders fell for the “mergers and acquisitions” fad that was popular and threw caution to the wind. They also seem to let the company divisions be run by kids just fresh out of college knowing nothing but theory and having little experience in life. “Do No Evil” turned into “Do Much Evil”. :/
Apple must make more political contributions since the Apple store is the only source for iPhone applications and you have to be an Apple approved developer to upload your apps. You also have to buy an Apple developer license.
With Apple you don’t have to make sure your app runs on a gazillion different devices like you do with Android. Mobile manufacturers are always adding some feature often which breaks something. I recall when Samsung came out with their Galaxy Tab before Google had a chance to support tablet devices. Needless to say Google was not amused.
Both Google and Apple make these kinds of deals and it needs to stop.
About damn time, LOOOOOONG overdue.
Nothing will change, the monster is gigantic and can write monster-size fines as easily as a politicians signs off on a multi trillion dollar government boondoggle.
Google don’t bother me at all, I could care less if they wanna track me, listen in on my of my devices etc..
The govt is just pissed off the big tech companies know how to make my ney and run big companies things out govt can’t do.