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Tuesday, November 12, 2024

Google, AGs reach settlement in antitrust case about app store sales

Federal Court
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Unsplash/Solen Feyissa

CHARLESTON – Google and attorneys general from 52 states and territories have reached a settlement in an antitrust case about the company’s mobile app store policies.

In a court filing September 5, Google and the AGs said they have reached an “agreement in principle.” The trial was scheduled to begin November 6.

The agreement in principle will be finalized over the next 30 days and submitted to the court for approval, at which point the details will be made public.


Morrisey

The lawsuit, filed in 2021 and led by the Utah Attorney General’s office, claimed Google’s alleged exclusionary conduct substantially shuts out competing app distribution channels. The AGs say Google unlawfully required app developers that offer their app through the Google Play Store to use Google Billing as a middleman. Such an arrangement forced app consumers to pay Google’s commission – up to 30% – on in-app purchases of digital content the consumers created through apps that were distributed via the Google Play Store.

The AGs allege Google broke its early promise to app developers and device manufacturers that it would keep Android “open source,” allowing developers to create compatible apps and distribute them without unnecessary restrictions. The lawsuit also alleges Google sought to enhance or protect its monopoly position by buying off its potential competition, requiring contracts that foreclose competition and imposing technical barriers to strongly discourage or effectively prevent third-party app developers to achieve success outside of the Google Play Store.

West Virginia Attorney General Patrick Morrisey, who was part of the coalition, said Google harmed consumers by using its monopoly power in the Android app market to inflate prices for paid apps and in-app purchases.

“Vigorous competition protects consumers and helps the economy thrive,” Morrisey said. “Our nation’s antitrust laws play a vital role in helping to foster innovation and ensure that consumers pay a fair price. Likewise, our nation loses when one company can use unlawful means to monopolize a particular market. We must feverishly oppose such tactics.

“No company is too big to play by the rules.”

Google has other antitrust legal issues, including another trial scheduled to begin next week about its dominant place in online searches. Another case about its advertising business is scheduled for the spring.

Morrisey joined the lawsuit with a bipartisan group of attorneys general from all 50 states, the District of Columbia and Puerto Rico. 

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