The Google Play logo is shown at the Tokyo Game Show 2019 in Chiba, east of Tokyo, Japan, on September 12, 2019. REUTERS / Issei Kato / File Photo
OAKLAND, Calif., Aug. 28 (Reuters) – Google, of Alphabet Inc (GOOGL.O), generated $ 11.2 billion in revenue from its mobile app store in 2019, according to a lawsuit no sealed on Saturday, which offers a clear view of the service’s financial results. for the first time.
Attorneys General for Utah and 36 other U.S. states or districts suing Google for alleged antitrust violations with the app store also said in the recently drafted filing that the business in 2019 had a gross profit of $ 8.5 billion. dollars and an operating income of $ 7 billion. of more than 62%.
Figures include app sales, in-app purchases, and app store ads. Google told Reuters that the data “is being used to mis-characterize our business in a bottomless lawsuit.”
The company and its prosecutors said that in a separate case on Saturday, a trial in late 2022 is possible on whether Google is abusing its alleged monopoly on the sale of apps for Android devices.
In its quarterly financial disclosures, Google groups the Play app revenue with that of other services and represents the store’s advertising revenue as part of another broader category.
Attorneys General, as well as mobile app developer Epic Games and others suing Google separately, have claimed that it generates huge profits through the Play Store by taking 30% of the fee for each digital asset sold within an application. Plaintiffs say Google’s reduction is arbitrarily high, eliminating the benefits of app developers.
Google argues that there are alternatives to the Google store and payment systems, although critics say these routes are unfeasible and were sometimes blocked.
The plaintiffs sued Google through anti-competitive bids and imposed restrictions on major developers, such as “League of Legends” maker Riot Games, to prevent them from leaving the Play Store.
A document filed by Epic Games this label said that Google, according to internal documents, feared losing $ 1.1 billion in annual app store profits if the Play Store was successfully surpassed. Read more
Paresh Dave Reports; Edited by Marguerita Choy and Andrea Ricci
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