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Lawsuit Documents Show $11.2 Bln In Revenue Made By Google Play App Store In 2019


08/29/2021


Lawsuit Documents Show $11.2 Bln In Revenue Made By Google Play App Store In 2019
A court filing that was unsealed on Saturday showed that revenue of $11.2 billion from its mobile app store was generated by Alphabet Inc's Google in 2019. For the first time, this offered a clear view of the financial results of the services of the company – which has been in scrutiny recently because of the company collecting commissions of up to 30 per cent from app developers of the Store.
 
The business unit of the Google had $8.5 billion in gross profit and $7 billion in operating income, at an operating margin of 62 per cent for 2019, said attorneys general for Utah and 36 other US states or districts who that are fighting a legal battle with the company over alleged antitrust violations with the app store.
 
The figures made available in the court documents also included sales of apps, in-app purchase and app store ads.
 
The data "are being used to mischaracterize our business in a meritless lawsuit," Google told the media about the data in the documents filed by it in court.
 
It is possible that there could be a trial in late 2022 over whether Google allegedly abuses its monopoly in app sales for Android devices, said the company and its accusers in a separate filing on Saturday.
 
Google discloses its Play app revenue with that of other services and accounts and the ad revenues for the store are represented as part of another broad category in its quarterly financial disclosures.
 
Google has been accused of generating huge profits through the Play Store as it takes 30 per cent of the fee for every digital good sold inside an app, according to attorneys general, as well as the mobile app developer Epic Games and others who are separately suing the search engine giant. Google has been accused of charging arbitrarily high commissions and is thus siphoning profits of the app developers.
 
In its defence, Google has pointed out to alternatives to Google's store and payment systems even as critics have argued that such alternatives are unfeasible and were sometimes blocked.
 
Google is also accused of striking anticompetitive deals to extend benefits to some developers while imposing restrictions on some of the major developers such as "League of Legends" maker Riot Games, and forces them to remain with Play store, the plaintiffs allege.
 
A court filing by Epic Games that was unsealed this month showed internal documents of Google where the company feared losing out $1.1 billion in annual app store profit if it was possible for developers to bypass the Play Store successfully.
 
(Source:www.economictimes.com)


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