Google Play: app store has billion dollar revenue released for the first time in court proceedings

Google faces a lawsuit for implementing possible anti-competitive practices in its Android app store. According to US officials, big tech has policies to prevent app developers from using stores other than the Play Store.

Amid accusations from 37 federal units in the North American country, a new requirement led to the disclosure of revenue generated by the app store. According to legal documents presented last Saturday (28), the Play Store generated $11.2 billion in 2019, that is, the equivalent of R$58.3 billion.

O Reuters reports that Google Play brought in $8.5 billion in gross profit and $7 billion in operating income, resulting in an operating margin of over 62 percent. These numbers are drawn from transactions such as in-app sales, in-app purchases (in-app transactions) and Google’s profitable ad platform.

Remember that this is the first time financial data are released to revenue from other services grouped into a single category. According to the Mountain View company, this data is being “used to misrepresent the business in an unreliable lawsuit.”

The accusers, who include Epic Games (also in a similar lawsuit against Apple), allege that the company generates exorbitant profits through the platform by charging the 30% fee on each digital service sold within an app.

Google argues that there are other ways to access Google’s storage and payment systems, although the plaintiffs argue that these options are often unworkable and sometimes blocked.

Other documents issued by Epic Games also state that Gigante das Buscas fears losing profits estimated at US$ 1.1 billion, if the process has an unfavorable outcome to it. The trial is expected to extend into the next few weeks.