Google is facing charges in the US for alleged monopoly through its app store on Android devices. Newly unredacted documents in a filing show that the company generated $11.2 billion (~Rs 82,000 crore) in revenue from the Google Play Store n 2019. The figure includes app sales, in-app purchases and revenue generated through ads on the Play Store.
The information was made public during antitrust litigation filed by attorneys general for Utah and 36 other US states or districts. The prosecutors allege that Google cuts down on the profit of app developers by taking huge cuts on every sale on the Play Store. These include the sales generated through paid apps as well as the in-app purchases made by users.
As per the newly revealed documents, Google's app store business generated $8.5 billion (~Rs 62,200 crore) in gross profit and $7 billion (~Rs 51,200 crore) in operating income in 2019. Its operating margin stood over 62 per cent for the year. As reported by Reuters, the data comes as a first-time insight into the company's complete earnings through the Play Store. It states that Google shows its Play Store app revenue clubbed with other services in its quarterly financial disclosures. On the other hand, revenue generated through Play Store's ads is represented under another, broader category.
As per Reuters, Google called the lawsuit "meritless" and stated that the data mischaracterize its business. Though the revelation in the filing is meant to highlight the Play Store as one of Google's major revenue sources. Establishing that could build the argument of why or, more importantly, how Google has maintained it as a cash cow through the years.
Prosecutors in various filings against the company argue that the tech major generates its Play Store profits through huge cuts on in-app purchases, which rightfully belongs to the app developers. The filings also blame Google for having practised anti-competitive measures to maintain its monopoly.
In a similar lawsuit by Fortnite maker Epic Games, it was revealed that Google ran a "Premier Device Program" starting 2019. Under this, Google offered between 3 and 6 per cent of Google Play Store earnings, as well as "monthly bonuses" to OEMs like LG and Motorola. These OEMs were in return asked to forbid apps that had "APK install privileges" on their devices without approval from Google so as to prevent sideloading of apps or any other app store on their devices.
In Epic's complaint, its lawyers called the program Google's "most restrictive anticompetitive conduct." In addition, they blamed Google for concealing the practice from public view. The lawyers highlighted that Google had even included a clause in the agreement that prevented the parties from making a public statement on the agreement "without the other party's prior written approval."
No comments:
Post a Comment
Welcome To My Blog.