Google is charging people “unjustly and excessively” for digital purchases on its Play Store. It claims to be a new proceeding against the British tech giant.
The proceedings seek damages of up to £ 920 million ($ 1.284 billion) on behalf of 19.5 million Android mobile users in the UK, and Google’s 30% cut from digital purchases consumes Claims that it means that the person has been overcharged and the competition has stopped.
The proceedings follow a similar proceeding against Apple in May, accusing Google of violating UK and European competition law.
The allegation was filed with Liz Coll, a former Citizens Counseling Digital Policy Manager, at the Competition Appeal Tribunal in London.
Google claims that the Play Store should be pre-installed on mobile phones and tablets using the Android operating system and placed prominently. This is intensifying competition as the majority of UK users rely on stores to access apps and other digital items.
In addition, Google processes transactions with its own payment system and directs people to the Play Store, which pays a 30% service charge for digital purchases, allowing the company to “huge” through “illegal and unearned taxes.” It was generating “rise” profits. Claim says.
Google recently reduced service charges to 15% of the first US $ 1 million in revenue that developers earn each year. The tech giant says that almost every developer on the platform will be cut in half.
“Google has done a great job of opening up access to all the benefits of smartphones to millions of people, including myself in the UK,” Coll said.
“But while it claims to be an open system that offers choices, in reality Google keeps out competition and locks consumers in its own app store and its own payment system.
“Google creates a marketplace for Android apps and controls it with a malicious grip. Customers flock to the Google Play store and pay 30% for every purchase or in-app purchase. You have no choice but to pay.
“Competing app stores that can offer the same service for a small price are never investigated.
“Google is the gatekeeper of so many digital services, and we are responsible for not abusing our position and overburdening consumers.
“These hidden claims are illegal and Google customers deserve compensation and better treatment from Google in the future.”
In response, a Google spokeswoman said: “Android offers more choices than any other mobile platform when deciding which app or app store to use. In fact, most Android smartphones come with multiple app stores preloaded.
“We are fiercely and fairly competing for developers and consumers. 97% of Google Play developers pay no service fees, which means that apps are offered to consumers for free.
“Only if less than 0.1% of developers are subject to a 30% service fee and earn more than $ 1 million, that fee is comparable to competitors and is a safe and prosperous platform that benefits everyone. You can constantly reinvest in the construction of. Who will use it?
“This proceeding ignores the benefits and options offered by Android and Google Play, as well as the highly competitive market in which we operate.”
The new legal allegations are a series of up-to-date ongoing cases involving both Google and Apple, claiming that their policies and app store management are anti-competitive.
Last month, the Competitive Markets Authority (CMA) released a survey of both companies and their services regarding concerns that their powers would be too strong to harm other businesses. problem.