It’s not just Epic that wants to sue Google. The Internet search giant has another enemy to face and this time from a law firm Hagens Berman in California. The lawsuit states that Google is involved in anti-competitive practices because of its 30% fee on Play Store transactions.
The suit is looking for monetary relief against the Internet search giant for its alleged anti-competitive practices and in-app payment processing fees. The law firm solicits other Android developers to come forward and join the other developers as part of a larger case.
The law firm stated that Android developers are working hard to develop an innovative app and bring it to the Google Play Store. However, developers are facing difficulty in using the Store because of its fees. As a result, developers have a hard time succeeding.
The lawsuit wants to emphasize Google’s ongoing abuse of market power, like inhibiting consumer choice and forcing developers to pay a 30% transaction fee. It’s just like Apple, Google takes a great slice of app store payments, such as subscriptions.
Google Has Market Power
Furthermore, the lawsuit states that Google is taking advantage of its market power to get more money from developers than they should have to pay to distribute their app. The suit said that Google violates the Sherman Act and the California Unfair Competition Law.
Google integrates its Play Store with standard Google apps to be part of its ecosystem. As a result, it gives the company a huge advantage over competing stores.
According to the lawsuit, the practices and contracts that Google imposes are stealing significant resources even from well-funded companies, like Amazon. Because of that, developers have no way of distributing their apps at lower costs.
The law firm, Hagens Berman, is not new to this type of dealing with a huge tech company. Last year, it filed a complaint against Apple for its developer fee and App Store pricing scheme. It’s also the same firm that sued Apple for iPhone throttling and selling refurbished AppleCare+ replacements.
In other words, the law firm is one of the most successful law firms in the US. It has managed to win more than $260 billion in settlements in suits against tech corporations, banks, and other huge entities.
The law firm wants every Android developer to join in this action. They stated that there’s no cost for developers to join. If the firm wins against Google, the firm will get a reasonable fee based on the court decision.
Google has been taking a 30% cut for many years now. And the cut has been a point of dissatisfaction. With this lawsuit and we can expect that more suits will come, it’s obvious that developers are not getting enough money from the apps they developed. We can also expect that this type of suit will be extended to Apple.
App developers are consistently bringing their creativity to Play Store. They have more in store to put the pressure on Google. Both Google and Apple are under scrutiny because of the alleged anti-competitive practices.