FOLLOW US

A bipartisan coalition of 37 attorneys general (AGs) is determined to hold Google accountable for its alleged monopolistic business practices.

On Wednesday, the coalition of AGs filed a second antitrust lawsuit against Google, alleging that the search engine giant is maintaining an illegal monopoly in the Android app distribution and in-app payment processing markets.

In October last year, the U.S. Department of Justice (DOJ) together with 11 states filed an antitrust complaint against Google for allegedly engaging in anticompetitive and exclusionary practices in search and search advertising markets.

New York AG Letitia James, Utah AG Sean Reyes, North Carolina Ag Joshua Stein, and Tennessee AG Herbert Slatery III are co-leading the second anti-trust lawsuit against the search engine giant.

AGs antitrust lawsuit focuses on Google Play Store 

In the complaint, the coalition of AGs alleged that the search engine giant is abusing its dominant power in the Android app distribution and in-app payment processing markets through the Google Play Store.

The AGs alleged that Google engaged in "anticompetitive tactics to diminish and disincentivize competition in Android app distribution." They also claimed that the search engine giant inserting itself as a middleman between app developers and consumers.

The search engine giant allegedly required app developers to sell apps through Google Play and digital in-app content through Google Play Billing. The tactic allowed the search engine giant to collect up to 30% commission from consumers who bought digital content or subscription on their Android devices.

In addition, the AGs claimed that Google broke its promise to app developers and device manufacturers, mobile network operators that it would keep Android an "open source," allowing them to develop and distribute compatible apps without unnecessary restrictions.

The search engine giant allegedly stifled competition by requiring original equipment manufacturers (OEMs) and mobile network operators (MNOs) to enter into exclusive contracts and other restraints. In exchange for entering into arrangements not to compete with Google Play Store, the search engine giant offer them OEMs and MNOs with a share of its monopoly profits.

The AGs claimed that Google's anticompetitive business practices harm Android app developers and consumers. The company is violating Sections 1 and 2 of the Sherman Act, which prohibits monopolistic business practices.

In a statement, New York AG James said, “Once again, we are seeing Google use its dominance to illegally quash competition and profit to the tune of billions...We are filing this lawsuit to end Google’s illegal monopoly power and finally give voice to millions of consumers and business owners.”

On the other hand, Utah AG Reyes called Google's anti-competitive business practices a "menace to the marketplace." He added that "Google Play is not fair play." The search engine giant "must be held accountable for harming small businesses and consumers."

—————————————-

Have a story you want USA Herald to cover? Submit a tip here and if we think it’s newsworthy, we’ll follow up on it.

Want to contribute a story? We also accept article submissions – check out our writer’s guidelines here.