Google Play Store Revenue: The antitrust charges filed against Google by several districts and states in the US claim that Google Play has a monopoly over application distribution.
Google Play Store Revenue: The revenue and earnings of the Google Play Store have been disclosed for the first time in 13 years.
According to the declassified documents, the Alphabet-owned company generated $11.2 billion as the total revenue, which roughly translates to Rs. 82,000 crore, from the Google Play Store in the year 2019. The amount includes the price of the application, additional in-app purchases and revenue generation through advertisements on the Play Store. The figures have been unveiled as a part of the antitrust lawsuit filed by several states in the US.
Google antitrust case reveals Play Store revenue of $11.2 billion
The antitrust charges filed against Google by several districts and states in the US claim that the company exercises a monopoly over application distribution. Google makes third-party app developers use its own payment methods for selling applications, thus charging a commission of up to 30%. As mentioned earlier, the total Google Play revenue stands to be $11.2 billion, out of which the Google Play gross profit is reported to be $8.5 billion. The net profit of Google Play in 2019 was $7 billion. When the net profit margin of Google Play revenue was calculated for 2019, it exceeded 62%. This is the first time since Google Play Store came into existence that its revenue is publically available. Google Play Store was launched in October 2008.
Google has been charged for creating a monopoly over the app distribution
The information was revealed to the public during ongoing litigation filed by attorney generals from 37 states and districts in the US. Google is alleged of cutting down app developers profits and taking a huge commission on sales amount on the Play Store. It also includes the sales through paid applications and sales made through in-app purchases. Google calls the lawsuit meritless and says that the data mischaracterizes its business. Prosecutors are trying to establish that Google Play Store earns a huge amount of money by charging a commission on sales of applications made by developers. The filing submitted to the court also alleges Google for practising illicit measures to maintain its monopoly.
In another lawsuit filed by Epic Games, the creators of Fortnite, it was known that Google had a Premier Device Program in which the company offered a share of Google Play Earnings (including monthly bonuses) to other companies like LG and Motorola. In exchange, these companies were asked by Google to not allow applications with APK install privileges on devices without the approval of Google.
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