Google’s Play Store is Google’s applications store for mobile phones and tablets using the Android operating system. It is now home to 2.96 million apps, making it the biggest app store in the world. The vast majority of those apps were not developed by Google, but rather by independent app developers. Software developers have no choice but to use Google’s marketplace. As alleged, Google has maintained, abused and leveraged its monopoly power through anticompetitive restraints it has imposed on device manufacturers, app developers, and consumers, in order to extract from developers a supracompetitive 30% tax on paid apps downloaded from Google Play.
According to Francois Einwaechter, Director of Peekya App Services, Inc.: “Google controls an essential bridge to reaching hundreds of millions of app users, and the toll that Google charges to use that bridge has no relationship to the security or cost of maintaining an app store. Sure, Google provides a service, and app developers understand that Google is entitled to make a profit. But Google has abused its dominant position atop the market to charge an unfair, outrageously high and anticompetitive fee to get access to a critical service – and Google intentionally has put up roadblocks to try to build or use other bridges to reach consumers. We aim to change that, to make this market more competitive, to preserve incentives for app developers who bring terrific products to market, and to lower costs for app developers and consumers.”
As alleged, Google’s anticompetitive conduct has deterred entry by would-be competitors, stifled innovation by controlling the manner in which Android apps are distributed, increased prices to app developers and consumers, and reduced output by reducing app developers’ capital and incentives for creating new apps.
Bonny Sweeney, co-chair of Hausfeld’s US Antitrust practice and one of the lead partners on the case commented: “Giant platform companies like Google have achieved unprecedented power. Hausfeld is proud to be paving the way for the enforcement of antitrust laws in these technological markets.”
Hausfeld attorneys working on this case include Bonny E. Sweeney, Scott A. Martin, Melinda R. Coolidge, Katie R. Beran, and Samantha Stein.
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Peekya offers a new and innovative way for people to connect while traveling for business or leisure before or even after arriving at their event or destination. Unlike other apps, which limit the search function based on current location, Peekya allows users to peek into the future days, weeks, or even months in advance of a trip. For more information, including how to get the app and invite your friends to join, please visit https://peekya.com/.
Hausfeld is a leading global law firm with offices in Amsterdam, Berlin, Boston, Brussels, Düsseldorf, London, New York, Paris, Philadelphia, San Francisco, Stockholm, and Washington, DC. The firm has a broad range of complex litigation expertise, particularly in antitrust/competition, financial services, sports and entertainment, environmental, mass torts, consumer protection, and human rights matters, often with an international dimension. Hausfeld aims to achieve the best possible results for clients through its practical and commercial approach, avoiding litigation where feasible, yet litigating robustly when necessary. Hausfeld’s extensive experience with alternative and innovative fee models offers clients a diverse menu of engagement options and maximum flexibility in terms of managing their cost exposure.
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