Google Play Class Action Lawsuit Alleges Anti-Competitive Scheme

A Google Play class action lawsuit accuses the app store of violating antitrust laws with a 30% fee on in-app purchases.

Plaintiff Mary Carr says Google is in violation of both state and federal antitrust laws by unlawfully charging a 30% fee on top of the cost of in-app purchases. As a result, consumers have allegedly been forced to pay more for in-app purchases. Additionally, smartphone manufacturers, competitor app stores, and app developers have reportedly been harmed by the restrictions the 30% fee imposes.

“Through its behavior, Google intends to eliminate consumer choice, foreclosing competition in mobile app distribution,” the Google Play app store class action lawsuit contends. “There is no legitimate procompetitive justification for Google’s conduct and restrictions.”

The Google Play class action lawsuit notes that the tech giant already has a monopoly on the mobile OS market. Android OS – owned by Google – reportedly has the highest number of OS users in the world with billions of people using the system around the globe and nearly 3 million compatible apps.

However, Google allegedly seeks to take its monopoly a step further by implementing “contractual and technological barriers” in their Google app store. These barriers reportedly make it nearly impossible for users to download apps outside of the Google Play store. This allegedly ensures that nearly all of the app downloads on Android phones are made through the Google app store.

“Google stifles or blocks consumers’ ability to download alternative app stores and apps directly from developers’ websites,” the Google Play class action lawsuit argues.

“Even if a user runs this gauntlet and manages to install a competing app store, Google protects the Play Store’s competitive advantage by blocking the alternative store from offering basic functions, such as automatic ‘background’ updates of the kind seamlessly available for apps downloaded from the Google Play Store.”

According to Carr, the 30% fee imposed on in-app transactions only makes matters worse. Not only are consumers forced to make purchases through Google Play, but they are also allegedly forced to pay more than they otherwise would based on the Google app store requirements.

The Google Play class action lawsuit contends that the tech giant would be unable to charge such high fees on app purchases and transaction fees if they did not have a strong monopoly. However, because Google holds almost complete control over app distribution, Carr says that there is nothing holding them back from taking advantage of consumers.

Carr says that these actions “eliminate consumer choice,” cause financial injury, and unfairly suppress competition in mobile app distribution. As a result, Google is allegedly in violation of antitrust laws such as the federal Clayton Antitrust Act.

In her Google Play app store class action lawsuit, Carr seeks to represent a Class of consumers who bought an app on Google Play or paid for in-app purchases through Google Play.

Google Play vs. Fortnite

In other legal news, Google was recently hit with a lawsuit from Epic Games – the developer of the popular game Fortnite. According to Epic Games, Google and Apple are both guilty of charging more for in-app purchases

To call out the app stores on this alleged practice, Epic boldly introduced a new feature to their in-app purchases. Users could choose to either pay a higher price for V-Bucks – Fortnite’s in-game currency – through the Google Play store or pay a lower price by purchasing directly from Epic Games. In response, Fortnite was removed by both the Apple and Google app stores.

Following these disputes, Epic Games filed their twin lawsuits against the two app stores.

“Epic does not seek monetary compensation from this Court for the injuries it has suffered. Epic likewise does not seek a side deal or favorable treatment from Google for itself,” Epic Games’ Google Play lawsuit notes.

“Instead, Epic seeks injunctive relief that would deliver Google’s broken promise: an open, competitive Android ecosystem for all users and industry participants. Such injunctive relief is sorely needed.”

Have you purchased apps through the Google Play app store? Share your thoughts in the comment section below.

Carr and the proposed Class are represented by George A. Zelcs, Robert E. Litan, Randall P. Ewing Jr., Jonathon D. Byrer, Stephen M. Tillery, Jamie Boyer, Michael E. Klenov and Carol O’Keefe of Korein Tillery LLC; Karma M. Giulianelli and Glen E. Summers of Bartlit Beck LLP; and Ann Ravel of McManis Faulkner.

The Google Play Antitrust Class Action Lawsuit is Carr v. Google LLC, et al., Case No. 5:20-cv-05761, in the U.S. District Court for the Northern District of California.

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