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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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.
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The plaintiffs, which include California and the District of Columbia, also say Google has unlawfully mandated that some apps use the company’s payment tools and give Google as much as 30% of digital goods sales.
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“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.”
state that began in September 2019 and have already resulted in three other lawsuits against the company. The cases threaten to force major changes to how it generates billions of dollars in revenue across its businesses, including advertising, in-app purchases and smart home gadgets.
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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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.
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