Acting AG Cash Joins Multi-State Google lawsuit

OKLAHOMA CITY - Oklahoma's Acting Attorney General Dawn Cash today joined a multi-state lawsuit against the Google corporation for monopolizing the smartphone application market in violation of state and federal antitrust laws.

The suit alleges that Google, one of the world's largest companies, operates a web of exclusionary agreements with phone manufacturers and carriers to exert control over app distribution on Android phones through its Google Play Store. By leveraging those agreements, the suit continues, Google can demand a 30 percent cut from third-party app developers for using its Google Play Store and for in-app purchases, a captive market practice that raises prices for consumers and limits options for anyone using an Android mobile operating system. The suit notes that the 30 percent commission Google charges is ten times higher than competitive prices through third-party payment systems.

"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," said California Attorney General Rob Bonta, in whose district the suit was filed. "This anti-competitive 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."

According to the suit Google does not disguise its intent to dominate Android, which Google acquired more than a decade ago. The Google Play Store is displayed most prominently on the home screen of nearly every Android device in the nation and cannot be deleted. The tech giant has also cornered the market with app developers who wish to sell on Android platforms - requiring app developers to use the Google Play Store in exchange for the ability to automatically update their applications. Developers are also denied the opportunity to offer cheaper alternatives to consumers for in-app purchases. Google's conduct eliminates competition for app stores and in-app payment systems on Android.

Over 90 percent of all Android app distribution in the United States is done through Google's Play Store. Consumers technically have the option of bypassing the Google Play Store and installing applications directly from developers or purchasing apps from competing marketplaces. However, Google deters this type of "sideloading" through a multi-layered and time-consuming process that forces users to click through often-misleading security warnings and multiple permission screens.

In the complaint, the multistate coalition alleges that Google has violated the federal Sherman Antitrust Act and California's Cartwright Act, among other statutes, by entering into agreements with smartphone manufacturers to ensure that Android phones offer Google Play as the primary — and often only — app store.

The complaint further alleges that Google, in violation of state and federal law, required apps that are distributed through Google Play to use Google Play's billing system for in-app purchases, and refused to distribute apps through Google Play if they integrated a rival billing system.

In filing today's lawsuit, Acting Attorney General Cash was joined by the attorneys general of Utah, New York, North Carolina, Tennessee, Alaska, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Idaho, Indiana, Iowa, Kentucky, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Dakota, Oregon, Rhode Island, South Dakota, Vermont, Virginia, Washington, West Virginia, and the District of Columbia.

Patch has approached the Acting Attorney General's office for comment.

Today's filing was made before the divisional office of the US District Court, Northern California District, in San Francisco. The case number is Case 3:21-cv-05227.

A copy of the complaint can be viewed here.