States Eyes Third Antitrust Lawsuit Against Google As They Assess App Store Complaints

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Because of the alternatives, Google’s management of its Play Store is often viewed as less of a problem for antitrust purposes than Apple’s absolute control over its App Store.

Dozens of attorneys general plan to file a third antitrust complaint against Google early next year, two people familiar with the investigation said on Monday, this time on its app store.

Two state coalitions filed antitrust complaints against Google last week: one led by Texas, focused on controlling the tech giant in the ad technology market, and a second, led by Colorado and Nebraska, targeting its power in online research. The second group is still investigating complaints about Google’s control of its Android Play Store and could file a lawsuit as early as January, people said.

The multi-state search-focused group Google had considered including the Play Store’s allegations in this lawsuit, but chose not to do so for fear of complicating the search affair, the people said, speaking anonymously to discuss an ongoing investigation.

States leading the effort include Utah, New York, Tennessee and North Carolina, a group of two Republicans and two Democrats.

Bloomberg first announced the news of a possible Play Store costume on Friday.

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Google’s control over its Play Store has sparked criticism and private antitrust lawsuits, mostly those brought by North Carolina-based maker of Fortnite Epic Games. The Google Play Store comes preinstalled on almost all Android devices, but the company allows users to download additional app stores, such as those offered by Amazon or Samsung. Users of most devices can also directly install apps downloaded from the Internet, commonly known as “sideloading”.

Sameer Samat, Google vice president for Android and Google Play, said most Android devices have two app stores preinstalled and users can easily add more.

“Each store is able to decide its own business model and the characteristics of the consumer,” Samat said in a statement. “This openness means that even if a developer and Google do not agree on the commercial terms, the developer can still distribute on the Android platform.”

Because of the alternatives, Google’s management of its Play Store is often seen as less problematic for antitrust purposes than Apple’s absolute control over its App Store, the only avenue allowed for iPhone and iPad users to acquire and install applications.

In August, Epic filed a double antitrust lawsuit against Apple and Google over their App Store restrictions. Other developers and consumers have also sued. These cases are still pending in federal court in California.

Apple and Google charge a 30% commission for any app downloads or purchases made within the apps, a fee the developers deem too high. In the past, Google has been lax in requiring developers to adhere to its in-app purchases policy, but in September the company announced that it would start enforcing its rules more vigorously in 2021.