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| Google offers special discounts for Netflix |
Google is accused of monopolistic abuse, anti-competitive behavior, and discrimination in dealing with Android app developers.
A new lawsuit recently filed against the search giant claims that Netflix store revenue has been drastically cut to ease the streaming giant's discontent.
And many platforms like Netflix and Spotify are trying to bypass the Google Play Store's internal billing system requirement.
These transactions are intended to enable Netflix to continue to use Google's payment platform.
The direct collection of credit card information by Netflix and Spotify has led Google to suggest that their Play Store apps should use their own billing system and that these apps have a year to change.
In it, the lawyer accuses the search engine giant of giving Netflix a drastically reduced revenue share in order to eliminate its desire for an alternative payment system.
The same document also claims that sharing of normal Google profits is arbitrary. The company usually charges 30% commission on purchases made in its stores.
Google's internal data was cited in the lawsuit showing that the profit-sharing breakeven point is around 6%.
The complaint cited the company's internal communications, which admitted that setting an arbitrary 30% fee did not go beyond Apple's traditional grounds.
Regarding the competition, lawyers cited the company's estimate that big players like Samsung could generate $100 million in revenue in 2019, while the Google Play Store would generate about $4 billion in revenue thanks to Samsung phones alone.
A company spokesperson confirmed that all developers follow the same guidelines as all other developers, including payment guidelines. We are still planning to support developers with improved resources and investments.
In addition, these measures demonstrate healthy competition between operating systems and app stores and benefit developers.
Google offers special discounts for Netflix
If the claims are true, that means the company wants to offer Netflix deals that other store developers can't get.
The company will not fight alone. Internal emails also revealed that Apple was offering privileges on Netflix that were not granted to other App Store users.
The search giant may have no choice but to change its approach. As part of the proposed settlement, Apple recently relaxed the rules for the App Store. The developers managed to provide customers with alternative payment systems, which are still prohibited by Google.
Allowing developers to use information from the App Store to contact customers via email is one of Apple's concessions. However, companies like Spotify and Epic Games say that's not enough.
Among these recent intelligence lawsuits and other lawsuits such as those brought by Epic Games and prosecutors. The search giant is under intense pressure to pursue Apple and make concessions to avoid more serious legal repercussions.