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29 Aug 2021

Google Faces Lawsuit after Play App Revenue Reaches $11.2 Billion

The Index Today

Google’s mobile app store generated $11.2 billion in revenue in 2019. This number was revealed in a court filing last Saturday.

However, Google is being sued by Attorney generals in Utah and 36 more states/districts over antitrust violations with regards to the app store. Recent uncensored filings revealed that the giant made approximately $8.5 billion in gross profit and $7 billion in operating income.

These figures are inclusive of sales made from apps, in-app purchases, and store ads. Google responded to the accusations saying that the data is being misused to defame the business in a deceptive lawsuit.

The lawsuit could see a trial in late 2022 according to all parties involved. This lawsuit will mainly concern accusations made upon Google over its monopoly in android app sales. Google’s Play app revenue and other services and account for the revenue as a part of another category.

Epic Games, a mobile app developer is also suing Google saying that the company brings in high revenue through the play store with its 30% fee for all digital goods sold within the app. Parties suing the giant claim that the fee is unreasonably high and is negatively affecting their own profits.

On the other hand, Google has stated that there are other alternatives for payment systems, but parties have said these channels are usually blocked or unfeasible. It has also been stated that the corporation used anticompetitive deals to increase restrictions on major developers, preventing them from leaving the app store.

According to internal documents, Google was worried about losing approximately $1.1 billion in profits if the play store was bypassed successfully.

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