For the first time, Google announces earnings with the Play Store

For the first time in history, Google was forced to disclose the earnings it made from the Play Store. The app store has been around since 2008.

The reason for the disclosure is simple: the company that owns the Android operating system is facing a lawsuit for anti-competitive behavior in the Play Store.

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According to the lawsuit, the Google app store has policies that prevent developers from using other stores for their creations. The charges were filed by 37 US federative units.

Last Saturday (28), the company released a document reporting that the Play Store generated US$ 11.2 billion in 2019 – about R$ 58.4 billion in the current conversion.

Google logo displayed on smartphone next to court hammer
For the first time, Google earnings from the Play Store are revealed. Image: Ascannio/Shutterstock

The accusing parties claim that Google generates exorbitant profits through the Play Store by charging a 30% fee on every digital service sold within the apps.

Among the top whistleblowers is Epic Games, which is also suing Apple for a similar reason.

The game developer company believes Google fears it would lose about $1.1 billion in profits if it loses the lawsuit for anti-competitiveness.

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According to news agency estimates Reuters, Google Play was responsible for US$8.5 billion (more than R$44.3 billion) in gross profit and approximately US$7 billion (approximately R$36.5 billion) in operating income.

The numbers point to an operating margin above 62%. The numbers are based on app sales, operations within the apps themselves available on the Play Store and advertisements provided by Google.

Featured Image Credit: BigTunaOnline/Shutterstock

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