Skip to main content

Home  »  US business news   »   Google nears settlement with 36 states over App Store monopoly 

Google nears settlement with 36 states over App Store monopoly 

Google building

Google nears settlement with 36 states over App Store monopoly

Google is closing in on a settlement with 36 US states and the District of Columbia, which accused the tech giant of monopoly. 

The lawsuit, filed in 2021, alleges the company wielded monopolistic control over app distribution on most of the world’s smartphones. 

The agreement is contingent on approval by state attorneys general, Google’s parent company’s board of directors, and court approval. 

Read More: Google To Spend $1.7 Billion On Ohio Data Center Expansion

While specific terms were not disclosed, the Utah attorney general’s office, the lead plaintiff, refrained from immediate comment.

A trial date had been set for November 6, with the complaint mirroring allegations made by mobile game maker Epic Games against Google. 

Epic Games’ lawsuit is scheduled for trial in November. 

Apple successfully defended itself in a separate lawsuit filed by Epic Games regarding its exclusive iPhone app store.

In April, a federal appeals court affirmed Apple’s sole control over app distribution.

Despite this settlement, Google still faces several major antitrust lawsuits.

Read More: Judge Dismisses RNC Lawsuit Accusing Google Of Bias In Spam Filters

It includes those brought by the US Justice Department and other government agencies nationwide, focused on alleged monopolistic behavior in the search and advertising markets. 

The Justice Department’s search-related case trial is slated for September 12.

$391 million settlement

In November, Google settled with 40 states regarding user location tracking, agreeing to pay $391 million. 

The lawsuit led by Utah was part of ongoing efforts to curb the substantial power held by tech giants like Google, Apple, Facebook, and Amazon, which have constructed vast digital empires, often with limited competition.

Like the Epic lawsuit, the states’ lawsuit primarily focused on Google’s control of its Play app store.

It enables Google to collect commissions of up to 30 percent on digital transactions within apps on Android smartphones. 

Need Career Advice? Get employment skills advice at all levels of your career

Google sought to differentiate itself by permitting consumers to download apps from sources other than its Play Store. 

In contrast, Apple restricts iPhone users from installing apps solely from its store.

However, the states’ lawsuit contended Google’s claims of offering consumers more choice through its open Android operating system were deceptive. 

The attorneys general argued that Google had established anti-competitive barriers to ensure it distributed over 90 percent of apps on Android devices, constituting an illegal monopoly.

Google is also grappling with a landmark case initiated by the US Justice Department in 2020.

It focuses on alleged abuses of its dominant search engine and digital ad network, generating about $100 billion in annual revenue for its parent Alphabet.

Follow us on YouTubeTwitterLinkedIn, and Facebook.


Related Articles

Skip to content