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| Google made $11.2 billion from its App Store |
According to recently released court documents, Alphabet Inc's Google subsidiary generated $11.2 billion in revenue for its mobile app store in 2019, clearly demonstrating the service's financial performance for the first time.
The attorney general said the company generated only $8.5 billion in gross profit and $7 billion in operating profit in 2019, with an operating profit margin of more than 62%.
In addition, the attorney conveyed the company's estimates. In other words, big gamers like Samsung can generate $100 million in revenue in 2019. Google Play Store generated about $4 billion in revenue from Samsung phones alone.
These numbers include app sales, in-app purchases, and App Store ads. Google told Reuters the data was used to misclassify its activities in an unfounded lawsuit.
The company and the defendant said in a separate document that it may be on trial by the end of 2022 over whether Google abused its so-called monopoly on selling apps for Android devices.
In its quarterly financial reports, the company added revenue from its own app store to revenue from other services and included ad revenue from the store as part of another larger category.
The prosecutor confirmed. In addition to mobile app developer Epic Games and other companies that have individually sued Google. She made a huge profit from her store. It does this by charging a 30% fee for every digital item sold on the app.
Google made $11.2 billion from its App Store
The plaintiff also asserted that the company's commission was too high. This leads to misappropriation of profits from application developers.
Google argues that there are other options for its store and payment system. Although critics say these methods are unnecessary and sometimes even taboo, they still are.
The plaintiff alleged that the company expanded its assets and placed restrictions on major developers such as League of Legends maker Riot Games to prevent them from exiting its business through uncompetitive transactions.
If it exceeds the commission, the company fears it will lose $1.1 billion in store profits each year. This is based on an Epic Games report released this month