Google in trouble: Accused of using its own payment tool and collecting 30% commission; 36 US states reach court over Google App Store's high fees

America's giant technology company Google is facing difficulties in its own country. Now 36 of the 50 states and the District of Columbia have filed lawsuits against Google on Wednesday. It is alleged that the mobile app store of the search engine abuses the monopoly. He imposes aggressive rules on software developers.

The lawsuit claims that Google "targeted potentially competing app stores" and ensured that developers were left with no choice but to bring their apps through Google Play. This is the fourth state-level or federal antitrust lawsuit since October. However, this is the first lawsuit seeking an investigation into the App Store. Google in a block post called the lawsuit rubbish.

He has said that it is surprising that the Attorney General is attacking the Play Store instead of our adversary Apple. According to William White, senior director of public policy at Google, "This lawsuit is not to help the little guy or protect customers." Rather, it is to promote some of the leading app developers who want the benefits of Google Play without paying for it.

Google forces you to sell digital content from Play Store

Mobile app developers say they are forced to sell their digital content through the Google Play Store. For this Google has to pay a commission of up to 30% for an indefinite period. Google forces them to pay more. The lawsuit states that if competition increases, users can get more options and innovation will be encouraged. Mobile app prices may also come down.

The lawsuit also raised concerns that Google had control over the distribution of mobile apps in its Android smartphone operating system. Due to this anti-competitive conduct of Google, the share of Google Play Store is more than 90%. Statistics show that Google's app revenue from mobile phone users around the world has reached a new high in the first six months of 2021. It stood at Rs 4.81 lakh crore.

Why did the states file suit?

Legislation proposals have come in several states in the past weeks to reduce the dominance of companies such as Apple and Google. Perhaps the states have taken this step only to strengthen the side of their law. Utah Attorney General Sean Reyes, who is leading the case, says Google Play is not acting fairly.

Google, Microsoft have reached a settlement in violation of the Sherman Act

The 144-page lawsuit, filed in California's Northeast District Court, claims Google is in violation of the Sherman Act in 36 states and the District of Columbia. This is a federal law. The Sharman Act prevents the wrong practice of establishing or maintaining a monopoly by preventing free competition.

This act was used to break the monopoly of Standard Oil in 1911 and AT&T in 1982. In 2001, Microsoft escaped trial under the Sherman Act. Then he settled with the Justice Department.

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