AG Jennings Sues Google for Antitrust Law Violation
Department of Justice | Department of Justice Press Releases | News | Date Posted: Thursday, July 8, 2021
Department of Justice | Department of Justice Press Releases | News | Date Posted: Thursday, July 8, 2021
Attorney General Kathy Jennings announced Thursday that Delaware and other state have filed suit against Google, alleging exclusionary conduct relating to the Google Play Store for Android mobile devices and Google Billing. This antitrust lawsuit is the newest legal action against the tech giant, claiming illegal, anti-competitive, and unfair business practices.
The complaint, filed Wednesday evening, accuses Google of using its dominance to unfairly restrict competition with the Google Play Store, harming consumers by limiting choice and driving up app prices.
“We’re holding Google accountable for its illegal monopoly on the digital market,” said Attorney General Jennings. “Google routinely and systematically uses its market share to exploit other businesses and smother competition. It is a Goliath that uses a flat-out predatory business strategy to ensure that nobody can challenge its dominance of the tech space. That’s bad for competition and bad for consumers. Antitrust laws are a cornerstone of a healthy market, and we will continue to defend and uphold those laws, no matter who breaks them.”
The lawsuit alleges that Google works to discourage or prevent competition, violating federal and state antitrust laws through its exclusionary conduct, which substantially shuts out competing app distribution channels. Google also requires developers that offer their apps through the Google Play Store to use Google Billing as a middleman. This arrangement forces app consumers to pay Google’s commission—up to 30%—on in-app purchases of digital content made by consumers through apps that are distributed via the Google Play Store. This commission is much higher than what consumers would pay if they had the ability to choose one of Google’s competitors instead.
This arrangement reneges on Google’s earlier promises to app developers and device manufacturers. When Google launched its Android OS, it originally marketed it as an “open source” platform that would allow developers to create compatible apps and distribute them without unnecessary restrictions. By promising to keep Android open, Google successfully enticed “OEMs”—mobile device manufacturers—such as Samsung and “MNOs”—mobile network operators such as Verizon—to adopt Android, and more importantly, to forgo competing with Google’s Play Store at that time. Once Google reached a critical mass of Android OS adoption, it moved to close the Android OS ecosystem—and the Android App Distribution Market—to any effective competition by, among other things, requiring OEMs and MNOs to enter into various contractual restraints. These restraints disincentivize and restrict OEMs and MNOs from competing (or fostering competition) in the relevant market. The lawsuit alleges that Google’s conduct constitutes unlawful monopoly maintenance, among other claims.
Delaware’s suit is part of a bipartisan, multistate effort co-led by attorneys general in Utah, New York, North Carolina, and Tennessee, and joined by Alaska, Arkansas, Arizona, California, Colorado, Connecticut, Florida, Idaho, Indiana, Iowa, Kentucky, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Vermont, Virginia, Washington, West Virginia, and the District of Columbia.
Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.
Here you can subscribe to future news updates.
Department of Justice | Department of Justice Press Releases | News | Date Posted: Thursday, July 8, 2021
Attorney General Kathy Jennings announced Thursday that Delaware and other state have filed suit against Google, alleging exclusionary conduct relating to the Google Play Store for Android mobile devices and Google Billing. This antitrust lawsuit is the newest legal action against the tech giant, claiming illegal, anti-competitive, and unfair business practices.
The complaint, filed Wednesday evening, accuses Google of using its dominance to unfairly restrict competition with the Google Play Store, harming consumers by limiting choice and driving up app prices.
“We’re holding Google accountable for its illegal monopoly on the digital market,” said Attorney General Jennings. “Google routinely and systematically uses its market share to exploit other businesses and smother competition. It is a Goliath that uses a flat-out predatory business strategy to ensure that nobody can challenge its dominance of the tech space. That’s bad for competition and bad for consumers. Antitrust laws are a cornerstone of a healthy market, and we will continue to defend and uphold those laws, no matter who breaks them.”
The lawsuit alleges that Google works to discourage or prevent competition, violating federal and state antitrust laws through its exclusionary conduct, which substantially shuts out competing app distribution channels. Google also requires developers that offer their apps through the Google Play Store to use Google Billing as a middleman. This arrangement forces app consumers to pay Google’s commission—up to 30%—on in-app purchases of digital content made by consumers through apps that are distributed via the Google Play Store. This commission is much higher than what consumers would pay if they had the ability to choose one of Google’s competitors instead.
This arrangement reneges on Google’s earlier promises to app developers and device manufacturers. When Google launched its Android OS, it originally marketed it as an “open source” platform that would allow developers to create compatible apps and distribute them without unnecessary restrictions. By promising to keep Android open, Google successfully enticed “OEMs”—mobile device manufacturers—such as Samsung and “MNOs”—mobile network operators such as Verizon—to adopt Android, and more importantly, to forgo competing with Google’s Play Store at that time. Once Google reached a critical mass of Android OS adoption, it moved to close the Android OS ecosystem—and the Android App Distribution Market—to any effective competition by, among other things, requiring OEMs and MNOs to enter into various contractual restraints. These restraints disincentivize and restrict OEMs and MNOs from competing (or fostering competition) in the relevant market. The lawsuit alleges that Google’s conduct constitutes unlawful monopoly maintenance, among other claims.
Delaware’s suit is part of a bipartisan, multistate effort co-led by attorneys general in Utah, New York, North Carolina, and Tennessee, and joined by Alaska, Arkansas, Arizona, California, Colorado, Connecticut, Florida, Idaho, Indiana, Iowa, Kentucky, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Vermont, Virginia, Washington, West Virginia, and the District of Columbia.
Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.
Here you can subscribe to future news updates.