A lawsuit was filed by several state attorneys general against Google and its Play Store. It echoes the Epic vs. Apple fight. A new document explains how and why Google's app store is similar. Michael Acton, senior correspondent at MLex, points out that the new complaint was filed Friday night by lawyers who were appointed to represent consumers (that is us). It joins Epic Games and the states in accusing Google for monopoly abuse and anti-competitive behavior.
Most telling of all is the mention that popular subscription services such as Tinder, Spotify, and Netflix have attempted to get around Google Play Billing's 30% cut. It is not a secret that Netflix and Spotify collected credit card information directly. According to reports, Google posted a clarification explaining that Play Store apps must utilize Google's billing system and giving them one year to make changes. The lawyers claim that Google offered Netflix a reduced revenue share in an apparent attempt to squash its desire for alternative payment systems.
We haven't seen the timing or details of the pitch, but it is a reflection of what we learned during the Epic vs. Apple trial. Apple emails showed that it offered sweeteners to keep Netflix using its in-app purchases system.
Similar The App Store is too big for us to change
A Google spokesperson stated that all developers are subject to the same policies and guidelines as other developers. This includes the payment policy. Since long, we have programs that provide support for developers by providing them with more resources and investment. These programs provide developers with enhanced resources and investments.
Google's standard 30 per cent commission is still a target. The suit cites internal Google figures that suggest the revenue sharing break-even point is about six percent. According to the complaint, Google internal communications state that the 30 percent commission was set because of copying Apple. However, lawyers point out that Google estimates that even major players like Samsung, Google could manage only $100 million in revenue in 2019, while Google earned around $4 billion.
3 - Google calculated that a 6 percent Play Store commission fee could be paid to break even - as opposed to the 30 percent Michael Acton (@MActon93), August 27, 2021
Google's June response to state AGs stated that the Play Store offers more choice and openness than other apps and that you can download it from another app store.
It cites the Google Play Developer Distribution Agreement, which prohibits developers from using customer information, such as email addresses, to reach customers. The relevant section can be found below.
4.9 You won't engage in any activity via Google Play (including making Your Products available via Google Play), that interferes with or disrupts, damages or accesses in an unauthorised manner any devices, servers or networks of any third party, including Google or any Authorized Provider. You cannot use the user information you have obtained through Google Play to distribute or sell Products.
According to the suit, this makes it impossible for developers not to reach customers directly to offer alternative services to Google Play Store. Apple has made a small concession in the class action settlement, allowing developers to use the App Store information to contact customers with information about alternative payment options. However, companies such as Epic and Spotify claim that this doesn't go far enough.
