Google Faces Lawsuits From Several Law Firms Over 30% App Revenue Cut

Aug 19, 2020 App News

Google Faces Lawsuits From Several Law Firms Over 30% App Revenue Cut

Google has been in trouble from the past few weeks, as the noise created by Epic Games has truly resonated and helped other parties speak up about the mega company’s unjust laws and actions. Google, a few days back, was caught up in a heated feud with Epic Games, as the same story that has continued for months came into practice again - Google charging a staggering, 30% cut from in-app purchases for all the apps on the Google Play Store - same for Apple’s app store.  

Epic Games tried to fight this previously as it asked users to download their app directly from their website on Android - but that didn’t work very well as they had to resort to Google’s store eventually. After being settled down for months, Epic Games couldn’t take it anymore so they bypassed Google and Apple’s 30% cut system, and allowed all the revenue that Fortnite generated from in-app purchases to be kept for themselves only. This was seen as a malicious move by the two giants, and so both of them kicked Fortnite off from their stores immediately, bringing back the bad blood which was left unsettled.

Now, companies, including Epic Games, have brought the fight back to Google as they’ve filed lawsuits against the tech company, accusing them for creating an unfair monopoly as they’re using their power in an extremely negative way which directly impacts the revenue generated by developers. The latest to join the party is California based law firm Hagens Berman, as they’ve also sued Google for unfair practices for taking a massive 30% chunk from developers’ revenue, abusing their power and maintaining exclusion by removing any competitors from the scene.

This was their statement:

“It concerns the harm caused by Google’s ongoing abuse of its market power, including the exclusion of competition, the stifling of innovation, the inhibition of consumer choice, and Google’s imposition on app developers of a supra-competitive 30% transaction fee,” the excerpt reads.

“Developers are harmed when they have to pay more than what the market would bear absent anti-competitive behavior. Innovation also suffers, as does competition more broadly,” said the statement on the firm’s website.

The tide initially seemed to be on the side of Google and Apple, but now it feels like Epic Games might’ve started something big, as there certainly might be perspiration drops streaming down the virtual faces of the two big power companies.

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