Photographer: Gabby Jones / Bloomberg
Photographer: Gabby Jones / Bloomberg
At least three US states are conducting research Google from Alphabet Inc. about the fees developers charge for in-app purchases and subscriptions, and they may file an antitrust suit against the company early next year, according to people familiar with the case.
The attorneys general of Utah, North Carolina and New York are among states preparing a lawsuit that has not been previously reported and could be filed as early as January, the people said, who asked not to be identified because the case was not is. private.
Read: Google is increasing pressure for apps to make fewer in-app purchases
An antitrust suit against Google for its app store would be another attack on the search engine giant’s business practices. Thursday, a group of 38 attorneys general, including New York, North Carolina and Utah, sued the company in federal court in Washington, accusing it of abusing its dominance in online searches. That case went beyond claims filed by the Justice Department in an October lawsuit – and came a day after a lawsuit from 10 states alleging that Google had illegally thwarted competition in online display ads.
Google’s app store practices research examines the 30% discount the Google Play Store takes from developers for in-app purchases. That’s the feature that allows users to subscribe to services or purchase upgrades within apps. Google’s 30% cut drops to 15% for users who have subscribed to an app for a year or more. Apple Inc. has the same policy.
The investigation found that US attorneys general continue to pressure dominant technology companies for behavior that they believe has harmed competition in digital markets. New York, North Carolina, and Utah were among those states Facebook Inc. earlier this month, arguing that the acquisitions of Instagram and WhatsApp violate antitrust laws and should be reversed.
Attorneys General in Utah, North Carolina, and New York did not immediately respond to requests for comment outside normal business hours.
Google said in response to a question about the study that Android customers can use app stores other than Google Play.
“Android has always allowed people to get apps from multiple app stores,” Sameer Samat, vice president of Android and Google Play, said in a statement. “Each store can define its own business model and consumer characteristics. This openness means that even if a developer and Google disagree on business terms, the developer can still distribute on the Android platform. “
Google has long looked for apps to help the company cut that, but several apps and services, including Netflix Inc. and Spotify Technology SA are exempt from this. In September, Google decided it would step up its efforts to meet the costs and eventually remove apps from its store that don’t implement Google’s payment system that gives the company the percentage it has set.
The 30% discount is the same that Apple is taking from developers, but the iPhone maker has in recent months that amount reduced. It started allowing some services not to pay the in-app purchase percentage and recently launched a program for developers who generate $ 1 million in revenue or less per year to make just 15% of their app sales to Apple. to pay.
– With the help of Tina Davis