Photographer: Gabby Jones / Bloomberg
Photographer: Gabby Jones / Bloomberg
At least three US states are investigating Google from Alphabet Inc. on the fees it charges developers for in-app purchases and subscriptions, and they can file an antitrust lawsuit against the company early next year, according to people familiar with the matter.
Attorneys general in Utah, North Carolina and New York are among the states preparing for a trial, which has not been reported before and could be filed as early as January, said people, who asked not to be identified because the problem did not it is not public.
Read: Google will increase push for apps to reduce in-app purchases
An antitrust lawsuit against Google over its app store would mark a new attack on the search engine giant’s business practices. On Thursday, a group of 38 attorneys general, including New York, North Carolina and Utah, sued the company in federal court in Washington, accusing it of abusing its dominant position in online searches. This case exceeded the demands of the Justice Department in an October lawsuit – and came a day after a lawsuit was filed by 10 states claiming that Google had illegally impeded competition in online display advertising.
The Google App Store Practice Survey examines the 30% discount from the Google Play Store from developers for in-app purchases. This is the feature that allows users to subscribe to services or purchase in-app upgrades. Google’s 30% discount drops to 15% for users who subscribe to an app for a year or more. Apple Inc. has the same policy.
The investigation shows that US attorneys general continue to put pressure on dominant technology companies for behavior they say has affected competition in digital markets. New York, North Carolina and Utah were among the states that sued Facebook Inc. earlier this month, claiming that his Instagram and WhatsApp purchases violated antitrust laws and should be canceled.
Attorneys General in Utah, North Carolina and New York did not immediately respond to requests for comment after normal business hours.
Google said in response to a survey question that Android allows customers to use stores other than Google Play.
“Android has always allowed people to get apps from multiple app stores,” Sameer Samat, vice president of Android and Google Play, said in a statement. “Each store can decide its own business model and consumer characteristics. This opening means that even if a developer and Google do not agree to the terms and conditions, the developer can still distribute on the Android platform. “
Google has long been looking for apps to offer the company that cut, but more apps and services, including Netflix Inc. and Spotify Technology SA, have been exempted. In September, Google decided to step up its efforts to take over taxes and eventually remove apps from its store that do not implement Google’s payment system, which gives the company the set percentage.
The 30% discount is the same that Apple takes from developers, but the iPhone manufacturer in recent months has done so reduced that amount. It began allowing services to not pay a percentage for in-app purchases and recently launched a $ 1 million or less developer program for developers to pay only a 15% discount on app sales to Apple. .
– With the assistance of Tina Davis