The filing drew praise from Meghan DiMuzio, executive director for the Coalition for App Fairness, which represents companies including Match Group Inc and Spotify Technology SA that oppose some of the Play Store rules.
“Google Play is not fair play,” Utah Attorney General Sean Reyes said in a statement. “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.”
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They also called for civil penalties and a court-imposed monitor to ensure Google eases the process for consumers, app developers and smartphone makers to use or promote alternatives to the Play Store and the official payment system for 20 years. In addition, the states seek to stop Google’s payments to Samsung and developers.
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The states, led by Utah, New York, North Carolina and Tennessee, argue that Google has generated “enormous profit margins” from the Play Store by engaging in illegal tactics to preserve monopolies in selling Android apps and in-app goods.
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“Any unanticipated increase in costs can come as a surprise,” although municipalities do have some funds for contingencies, said Travis Shaw, senior vice-president for public finance at DBRS Morningstar.
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The states alleged that Google bought off developers so they would not support competing app stores, and that through numerous secret projects it intended to pay Samsung Electronics Co, whose rival app store posed the biggest threat, to stop competing.
WASHINGTON/OAKLAND, Calif., July 7 (Reuters) – Thirty-seven U.S.
state and district attorneys general sued Alphabet Inc’s Google on Wednesday, alleging that it bought off competitors and used restrictive contracts to unlawfully maintain a monopoly for its app store on Android phones.
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