Google Play’s App Store Revenue Reached $ 11.2 Billion In 2019, Lawsuit Says



The Google Play logo is displayed 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) – Alphabet Inc’s Google (GOOGL.O) generated $ 11.2 billion in revenue from its mobile app store in 2019, according to an unsealed court record on Saturday, offering a clear view of the department’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 new unredacted filing that the company made $ 8 gross profit in 2019. , $ 5 billion, and operating income of $ 7 billion, for an operating margin. by more than 62%.

Figures include app sales, in-app purchases, and App Store ads. Google told Reuters the data “is being used to misrepresent our business in a baseless lawsuit.”

The company and its accusers said in a separate filing on Saturday that a lawsuit in late 2022 was possible over whether Google is abusing its alleged monopoly on sales of apps for Android devices.

In its quarterly financial information, Google aggregates the Play app’s revenue with that of other services and counts the store’s advertising revenue under another larger category.

Attorneys General, along with mobile app developer Epic Games and others separately suing Google, have claimed it makes huge profits through the Play Store by taking 30% of the fee for every digital good sold in an app. . Complainants say Google’s cut is arbitrarily high, siphoning profits from app developers.

Google says there are alternatives to Google’s store and payment systems, although critics say these routes are impractical and have sometimes been blocked.

The plaintiffs allege that Google, through anti-competitive agreements, extended benefits and imposed restrictions on major developers such as “League of Legends” maker Riot Games to prevent them from leaving the Play Store.

An unsealed Epic Games file this month said Google, according to internal documents, feared losing $ 1.1 billion in annual App Store profits if the Play Store was successfully bypassed. Read more

Reporting by Paresh Dave; Editing by Marguerita Choy and Andrea Ricci

Our Standards: The Thomson Reuters Trust Principles.


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