Google CEO Sundar Pichai testified in a San Francisco antitrust trial, defending the company’s practices related to the Google Play Store. The trial follows a separate case in Washington, D.C., in which Google is accused of hindering competition and innovation. In the San Francisco case, Epic Games alleges that Google operates an illegal monopoly through the Play Store payment processing system, which charges a 15% to 30% commission on in-app purchases.
During questioning, Pichai faced confrontational inquiries from lawyers, and tensions rose when University of Chicago professor Kevin Murphy disclosed that Google provides Apple with a 36% share of search ad revenue from Safari. This revelation adds complexity to the ongoing antitrust saga, highlighting the financial intricacies of Google’s dealings with Apple.
Pichai defended Google’s competition with Apple, emphasizing Android’s role in offering consumers more choices and lower smartphone prices. He also pointed out that 97% of software developers on Google Play do not pay fees, underscoring the benefits of the revenue-sharing model for developers.
The trial delved into the lucrative nature of the Play Store, revealing an operating profit of $4.4 billion during the first half of 2020. This occurred a fortnight after Pichai’s testimony in the Washington trial, which is focused on Google’s dominant search engine and its role in the company’s launch in 1998.
These trials underscore Google’s immense power and its intricate relationship with tech giant Apple. Despite the geographical and subject differences between the two trials, they both highlight common issues related to Google’s impact and its relationship with Apple. This coverage is in-depth and provides insights into the ongoing legal battles of Google.
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