The state of Indiana has joined 36 other states in filing a lawsuit against Google Inc. (Nasdaq: GOOGL) for what the states claim are monopolistic practices. Indiana Attorney General Todd Rokita says the digital company attempted to “thwart competition and maintain unfair control over markets for Android app distribution and Android in-app payment processing.”
The 37 attorneys general say Google is abusing its market control through Google Play, an app store that comes pre-installed on most Android devices.
“All businesses certainly have the right to seek strategic advantages and maximize their own profits, but in pursuing these goals they must also comply with antitrust laws and consumer protection statutes. Competition is an important part of our economy that protects consumers,” said Rokita.
When users purchase apps, Google requires them use its own payment processing services. The suit claims Googles charges inflated fees up to 30% for the service.
The states allege Google artificially limited the availability of feasible alternatives that might otherwise place competitive pressure on Google to offer lower fees, enhance quality or innovate new features.