Google Play Class Action Lawsuit Alleges App Monopoly

Two years after paying record breaking court-ordered fines in Europe, the Google Play store, with its insular marketplace of apps, faces legal action again from a proposed Class of plaintiffs claiming the tech giant is monopolizing the market. 

Filed in California’s Northern District Oct. 9, the complaint accuses the Google Play Store of imposing “anticompetitive contractual restrictions” on app developers and charging consumers supracompetitive prices.

Google’s “unlawful conduct has prevented such choices and foreclosed competition, to the enormous detriment of consumers throughout the United States,” plaintiffs said in the class action lawsuit.

The court filing argues the Google Play store has become such a global powerhouse in the mobile and computer apps market that “through various anticompetitive acts and unlawful restraints on competition” it “possesses and maintains monopoly power” in the digital space. 

The plaintiffs cite violations of antitrust laws in the class action lawsuit, elaborating on how a monopoly has formed in the last decade. 

First, they allege, companies making smartphones have no choice but to use the Android operating system from Google, claiming in the lawsuit that “Android is the only commercially viable” option.

Since the Google Play store is an extension of Android’s operating system, these phone makers are then left without a choice but to include it on the phone, according to the class action lawsuit. 

“The Android ecosystem is akin to the iOS ecosystem created by Apple,” the plaintiffs said. “As the dominant OS licensor, Google recognizes that participation on its platform is a ‘must-have’ market for developers.”

The filing further alleges that consumers, once they have purchased the device, are left with a similar lack of choice. Plaintiffs say if they wanted to use an app not offered on the Google Play store, “extreme and unwarranted obstacles” prevent them from doing so. 

The class action lawsuit describes a series of complicated steps needed to avoid using the Google Play store and allege the process is used “to deter the direct distribution of competing app[s]” which empowers Google and deters competition.

Furthermore, the plaintiffs argue the act of bypassing the Google Play store, also known as “sideloading,” is discouraged by a series of inaccurate warning messages. The complaint asserts this “security pretext is an excuse to further restrict an app developer’s ability to reach Android users.” 

The plaintiffs cite findings from both the European Commission and a relevant U.S. House of Representatives subcommittee regarding the Google Play store.   

In July 2018, the European Commission fined Google €4.34 billion, the largest penalty ever from the governing body, in antitrust violations. 

In the House’s subcommittee investigation, members found the Google Play store “functions as a gatekeeper” that works to exclude competition by “exploiting information asymmetries.”

Plaintiffs specifically cite the House investigation in the class action lawsuit. 

“The dual dominance of the Play Store and the Android ecosystem enable Google to exert control and engage in conduct that harms competition by exploiting, excluding, and discriminating against rivals.”

The number of app downloads show “the disparity caused by Google’s monopolistic grip,” according to the complaint, claiming the Google Play store hosted some 2.7 million apps in 2019 while its closest competitor can only offer less than half that number.   

The plaintiffs contend in the class action lawsuit that the Google Play store is akin to a personal computer’s web browser, claiming “millions … safely download and install software directly, such as through Google’s own Chrome browser or Mozilla Firefox.”

“Google’s dominance of the Android App Stores market exceeds 90%,” according to the complaint. 

Additionally, the plaintiffs argue they were “harmed, damaged and injured” by the exorbitant 30% commission paid to obtain apps on the Google Play store.

The class action lawsuit further alleges consumers do not consider “lifecycle prices” or Google’s “anticompetitive contractual restraints and policies” when buying a phone and can’t easily keep the apps they’ve purchased if they switch devices later. 

“Android has long been considered open-source software, but Google has slowly been adding key components into its Google Play Services software and associated agreements,” the Verge reported. 

Formally, the complaint alleges violations of antitrust laws in at least 26 states in addition to state laws regarding damages and relief. 

The class action lawsuit against the Google Play store includes plaintiffs from North Carolina, Pennsylvania, Colorado, Missouri, and Florida but plaintiffs are seeking anyone in the U.S. “who purchased an app or in-app product or service on the Google Play Store.” 

Have you downloaded an app from the Google Play store? Did you feel that your choices were unfairly limited? Let us know in the comments below. 

Counsel representing the plaintiffs in the Google Play class action lawsuit are David Azar, Peggy J. Wedgworth, Robert A. Wallner, Elizabeth McKenna, Blake Yagman, Michael Acciavatti of Milberg Phillips Grossman LLP.

The Google Play Class Action Lawsuit is Bentley, et al. v. Google LLC, et al., Case No. 5:20-cv-07079, in the U.S. District Court in the Northern District of California.

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