Google reportedly offered Netflix a break from the usual Play Store commission

An antitrust lawsuit filed against Google and its Play Store by several state attorneys general echoed the Epic battle against Apple, and a new document highlights how and why Google’s App Store is so similar. MLex senior correspondent Michael Acton report the new complaint, who arrived Friday night from attorneys appointed to represent consumers (that is, us) in a possible class action lawsuit that joins States and Epic Games to accuse Google of abusing its monopoly power and behavior anti-competitive.

Image: MLex, CONSOLIDATED FIRST AMENDED CLASS COMPLAINT, CASE NO. 3: 20-CV-05761-JD – 42

Perhaps most telling is the mention that popular subscription services like Spotify, Netflix, and Tinder have tried to find ways around Google Play billing and that 30% discount. It is no secret that the direct collection of credit card information by Netflix and Spotify has reportedly led to Google issuing a “clarification” explaining that Play Store apps should use Google’s billing system and give it to them. a year to change. In this case, lawyers accuse Google of offering Netflix a “dramatically reduced revenue share” with the apparent intention of crushing its desire to use an alternative payment system.

While we haven’t seen the details or timeline for this supposed pitch or, it directly reflects things we learned in the Epic vs Apple trial, where emails from Apple show he proposed. a series of sweeteners to keep Netflix on its app. purchasing system.

In a statement to The edge, a Google spokesperson said, “All developers are subject to the same policies as all other developers, including the payment policy. We have long had programs in place that support developers with improved resources and investments. These programs are a sign of healthy competition between operating systems and app stores and benefit developers. Whether this is a sign of healthy competition is debatable, as Google’s efforts largely match Apple’s, including cutting the subscription commission by half after one year, although it goes further by offering a 15% reduction to developers on their first million dollars in income.

Google’s standard 30 percent commission is still a major target, as the lawsuit cites internal Google figures suggesting the break-even point for revenue sharing is actually around six percent. The complaint cites internal Google communications which admit that setting the “arbitrary fee” at 30% has “[n]o justification, other than Apple’s copy. And when it comes to competition, lawyers cite Google estimates that even a major player like Samsung could only manage $ 100 million in revenue for 2019, while Google raked in around $ 4 billion.

Google’s response to the state AG in June said that the Play Store “offers more openness and choice than others,” and that on Android “you can choose to download the app from a competitor app store or directly from a developer’s website “. However, this filing also digs loopholes in that argument, pointing out that Google’s OEM deals with phone makers interfere with making other app stores as easy to access as the Play Store, which they must include on the home screen of a device in order to preload Google applications such as Gmail and Google Maps.

Picture: MLex, FIRST AMENDED AND CONSOLIDATED CLASS ACTION COMPLAINT, CASE NO. 3: 20-CV-05761-JD – 53

In a timely appeal, he cites the Google Play Developer Distributor Agreement that prohibits developers from using customer information they get from the Play Store, like email addresses, to contact them directly. You can read the relevant section below.

4.9 You will not participate in any activity with Google Play, including making your products available through Google Play, that interferes with, disrupts, damages or unauthorized access to devices, servers, networks or other properties or services of third parties. . party, including, but not limited to, Google or any authorized vendor. You may not use user information obtained through Google Play to sell or distribute Products outside of Google Play.

This makes it “impossible for developers to directly reach customers to offer alternatives to the Google Play Store,” according to the lawsuit. Allowing developers to use information from the App Store to contact customers with emails that include information about alternative payment options is one of the small concessions Apple made in its proposed class action settlement earlier. this week, although companies like Spotify and Epic say it’s wrong. almost far enough.