Why is the Google Play Store the main app distributor on Android? A new lawsuit from 36 states claims Google has conspired to stop third-party app stores from encroaching on the Play Store’s dominance.
On Wednesday, a coalition of state prosecutors filed the antitrust lawsuit against Google, which accuses the tech giant of maintaining an illegal monopoly over the Android ecosystem through the Play Store.
“Google Play is not fair play,” says Utah Attorney General Sean Reyes, who is leading the coalition. “It must stop using its monopolistic power and hyper-dominant market position to unlawfully leverage billions of added dollars from smaller companies, competitors and consumers beyond what should be paid.”
Still, the lawsuit is a little surprising, given that Android smartphones let you sideload apps from third-party app stores. In contrast, iPhones do not, unless you jailbreak the device.
However, the lawsuit claims Google has used a variety of anti-competitive tactics to ensure the Play Store remains Android’s go-to place for apps. This has included trying to quash Samsung’s own Galaxy app store.
“Google was willing to offer Samsung myriad benefits and concessions in order to prevent Samsung’s Galaxy Store from being built out,” the lawsuit alleges. “Google initially proposed paying Samsung up to [redacted]; in return, Samsung would give up its direct commercial relationships in app distribution with consumers and developers.”
The complaint itself spans 144 pages, and covers the numerous ways Google allegedly tried to prop up the Play Store. For example, although Android lets you sideload apps, the lawsuit accuses Google of using security safeguards to dissuade and stop Android users from downloading apps from third-party sources. Other warnings will claim a legitimate app is potentially harmful, and encourage the user to uninstall the program.
“Even secure, highly curated Android apps and app stores like Fortnite and the Amazon Appstore are subject to such warnings,” the lawsuit says. (To install an app from a third-party store, you have to go into your Android phone’s settings, and allow downloads from unknown sources.)
The lawsuit goes on to say Google’s control over app distribution means the company can extract an up to 30% percent commission from app developers, who have little choice but to use the Play Store. “Most consumers have no idea that for years Google has imposed unnecessary fees far beyond the market rates for in-app transactions, unlawfully inflating costs for many services, upgrades and other purchases made through apps downloaded on the Google Play Store,” Utah’s attorney general adds.
The allegations echo the claims the European Union brought against Google over its control of the Android ecosystem, which resulted in a $5 billion fine. The lawsuit from the state prosecutors is demanding Google cease the anticompetitive conduct and pay up in damages to consumers in the affected states.
In response, Google calls the lawsuit “meritless.”
“If you don’t find the app you’re looking for in Google Play, you can choose to download the app from a rival app store or directly from a developer’s website. We don’t impose the same restrictions as other mobile operating systems do,” the company wrote in a blog post. “So it’s strange that a group of state attorneys general chose to file a lawsuit attacking a system that provides more openness and choice than others.”
The blog post goes on to point out some Android devices also ship preloaded with two or more app stores. According to Google, the lawsuit also avoids the elephant in the room by failing to bring up Apple and its strict control of the iOS ecosystem.
“This completely ignores the competition we face from other platforms such as Apple’s incredibly successful app store, which accounts for the majority of mobile app store revenues according to third-party estimates,” Google adds. “We compete for both developers and consumers, and if we’re not providing them with the best experience on Google Play, they have other alternatives to choose from.”
