AGs from 36 states and DC file an antitrust suit against Google, targeting Play Store's practice of making devs use its billing system and charging a commission

The lawsuit filed in California federal court is the third by state attorneys general to target the company for alleged antitrust violations.

Politico 2021-07-08 Leah Nylen

Context & Ripple Effects

The Play Store case follows reporting that a group of state AGs was preparing to challenge Google's cut from app developers, extending state scrutiny from Google's search practices to its mobile distribution terms. Separate state and federal complaints had already focused on alleged exclusionary conduct in search and search advertising.

The new suit centers on whether Google can require Play Store developers to use its billing system and pay a commission. Related coverage also flags Google's allowance of sideloading as a key distinction in the dispute, unlike Apple's more closed distribution model.

First-order effects

Google must defend its Play Store billing and commission requirements in California federal court against a coalition of 36 states and DC.
Developers using the Play Store gain a state-led challenge to the payment rules that govern their in-store sales.

Second-order effects

Google's ability to point to sideloading will become a central test of whether alternative distribution meaningfully constrains its Play Store terms, as highlighted in coverage of the suit's sideloading distinction.
The lawsuit adds pressure to Google's app-distribution model alongside the earlier multistate search antitrust case, widening the set of product rules subject to state enforcement.

Third-order effects

If state AGs sustain challenges across search and app distribution, platform gatekeepers will face more fragmented, product-by-product antitrust scrutiny rather than a single dispute over search.
The case places platform payment mandates and commissions within a broader enforcement trend toward testing whether nominal alternatives such as sideloading offset gatekeeper control.

The trend: State antitrust enforcement is broadening from Google's search conduct to the rules and take rates governing access to its mobile platform.

Discussion

Vox Sara Morrison on x
Google is facing yet another major antitrust lawsuit
@joshstein_ Josh Stein on x
BREAKING: Today, I sued Google for violating our antitrust laws again. It's using its monopoly power in Android to dominate app sales w/ Google Play Store. Then it forces buyers to pay using its processing service at up to a 30% fee! Most payment processors charge around 3%. 1/
@timsweeneyepic Tim Sweeney on x
Google engineered an open platform in the core of the Android OS, but later devised tying contracts, software anti-patterns, and a cartel relationship with OEMs to lock Android down and block real competition. It's tragic that the “Don't Be Evil” company let it come to this. http…
@klasfeldreports Adam Klasfeld on x
A coalition of 37 AGs—co-led by NYAG Letitia James—files an antitrust suit against Google following the recent stumble in the similar against Facebook. Lawsuit: https://ag.ny.gov/... https://twitter.com/...
@backlon Dieter Bohn on x
Wow. Google tried to get Samsung to ditch the Galaxy Store and just make it a whitelabel for the Play Store. https://www.theverge.com/... https://twitter.com/...
@newyorkstateag Ny Ag on x
I'm co-leading a bipartisan coalition of 37 AGs in a lawsuit against @Google for its unlawful and anticompetitive conduct around its mobile app store. This is our second lawsuit against Google in the last six months as we seek to protect consumers and competition.
@citizenalex3 Alex Harman on x
If you get 4 antitrust suits in 12 months do your lawyers do the 5th one free? https://twitter.com/...
@backlon Dieter Bohn on x
Later this year, streaming apps will have to offer Google in-app purchases. If they don't, they're disallowed from even hinting that there are other ways to subscribe outside the Play Store. Just like on iOS. https://twitter.com/...
@stevekovach Steve Kovach on x
Similar to what an antitrust suit against Apple would look like too. Interesting states are going after Google first though. https://twitter.com/...
@matthewstoller Matt Stoller on x
And another one... https://twitter.com/...
@ddayen David Dayen on x
Google's lobbyists successfully blocked states from legislating an end to monopoly abuse of app store fees, but now their lawyers will have to fight it in court https://www.bloomberg.com/...
@kifleswing Kif on x
Big part of the argument in new multi-state lawsuit over Google's app distribution is that the Google Play Store and the Apple App Store don't compete directly. https://storage.courtlistener.com/ ... https://twitter.com/...
@stevesi Steven Sinofsky on x
States to Microsoft: Apple is so small it isn't in your market States to Google: Apple is so big it is its own market
@backlon Dieter Bohn on x
Sorry I'm still stuck on this “Our company mission is to organize the world's information and make it universally accessible and useful.*” (*Unless you want to find out how to subscribe to Netflix from within the Netflix Android app after Sept 2021) https://twitter.com/...
@daiwaka Daisuke Wakabayashi on x
Interesting that Google's defense here is to throw Apple under the bus. https://blog.google/...
@backlon Dieter Bohn on x
Anyway I know it's July and late in the day, but I assure you this multi-state lawsuit against the Google Play Store is a big deal. Reading through it now and there are enough redactions and hints of receipts to make me believe these AG's did not come to ...play
@econ_marshall Marshall Steinbaum on x
Well done to the Utah AG's antitrust team for spearheading this lawsuit. https://twitter.com/...
@backlon Dieter Bohn on x
Here's Google's initial response to the lawsuit in blogpost form. It's a classic in the “we are confused this is so strange why is anybody mad?” genre https://blog.google/...
@timsweeneyepic Tim Sweeney on x
@DigitallyBones Android is built on the open source Linux kernel and iOS is built on the open source Mach kernel. They used open source software, built new features on top of it, and locked developers and consumers in. https://en.wikipedia.org/...
@reckless Nilay Patel on x
You get an antitrust lawsuit, and you get an antitrust lawsuit, and you, and you, an https://www.theverge.com/...
@agellison Attorney General Keith Ellison on x
Smartphones help us afford our lives & stay connected to the world. But Google uses its monopoly to unfairly restrict competition in the Google Play Store. That limits choice, stifles innovation, and drives up app prices. 36 other AGs & I just sued them. https://www.politico.com/…
@jacknicas Jack Nicas on x
The latest antitrust lawsuit against Google essentially puts Apple on notice. Many of the claims made about Google's app store apply to Apple, too. https://www.nytimes.com/...
@mmasnick Mike Masnick on x
This one... confuses me. Google Android is one of the only such ecosystems that allows 3rd party app stores and sideloading... so why is it the one facing an antitrust lawsuit? https://twitter.com/...
@econliberties @econliberties on x
In taking aim at Google's abuse of its app store dominance, this bipartisan coalition of attorneys general is showing once again that Big Tech is not above the law. More on the suit from @Pat_Garofalo 👇 https://www.economicliberties.us/ ... https://twitter.com/...
@derekmross Derek Ross on x
Wait until they find out about Apple and their App Store. https://www.nytimes.com/...
@snazzyq Quinn Nelson on x
No wait. That's backwards. Apple is the one that's supposed to change. https://twitter.com/...
@lockheimer Hiroshi Lockheimer on x
We built an OS, available to all for free, and it even supports multiple app stores. It's strange that this suit attacks Android when it provides an unprecedented level of openness and choice. We think they got it wrong, and we'll defend ourselves. https://blog.google/...
@bobbyallyn Bobby Allyn on x
Google's response: “This lawsuit isn't about helping the little guy or protecting consumers. It's about boosting a handful of major app developers who want the benefits of Google Play without paying for it.” https://blog.google/...
@ihnatko Andy Ihnatko on x
I'm going to follow this case with great interest. As I read the PDF of the suit and the AGs' specific complaints, my brain kept thinking “Wait...they meant to type ‘Apple’ there, didn't they?” Kind of like how it was years before I stopped thinking “Downton Abbey” was a typo. ht…
@slightlylate Alex Russell on x
I take this blog post to mean that Play will provide WebAPKs to competing browsers and that I'll be able to install other stores on my Pixel. Do I have that right? https://twitter.com/...
@thelinuxexp @thelinuxexp on x
Saying that Google Play competes with the Apple App Store is like saying that the Windows Store has to compete with the Mac App Store. It doesn't. Each platform is an island with captive users, and each of these stores has no competition at all. https://twitter.com/...
@dr_scaphandre @dr_scaphandre on x
@MacRumors @julipuli The iPhone defense force seems to have gone silent. They were quite vocal when Apple was being sued for violating antitrust. https://twitter.com/...
@dnaltews Brian Swetland on x
One of the things I fought for when we built Android and am very proud made it in to 1.0 and survived to this day is the ability to side-load apps, even including alternate app stores. Ability to run any software without approval of a central authority is a powerful thing. https:…

Chronicles