Google CEO Sundar Pichai made his second federal court appearance in weeks, defending Google's practices related to the Google Play Store in a San Francisco antitrust trial.
Epic Games, the creator of Fortnite, alleges that Google operates an illegal monopoly through the Play Store payment processing system, which imposes a 15% to 30% commission on in-app purchases.
According to AP News, during the over-two-hour questioning, Sundar Pichai navigated confrontational inquiries, occasionally appearing nonplussed or frustrated. Epic Games argues that Google's practices hinder competition, discourage innovation, and increase prices.
Google and Alphabet CEO Sundar Pichai departs federal court on October 30, 2023, in Washington, DC. Pichai testified on Monday to defend his company in the largest antitrust case since the 1990s.
Google Antitrust Trial Tensions Rise
Despite the geographical and subject differences between the two trials, both underscore common issues-Google's immense power and its intricate relationship with tech giant Apple. In the San Francisco trial, Google contends that competition exists between Apple's iPhone, operating system, and app store, while the Washington case centers around deals between Google and Apple related to the search engine.
University of Chicago professor Kevin Murphy disclosed that Google provides Apple with a 36% share of the total search ad revenue from Safari, challenging Google's attempts to keep this information confidential, per The Verge. This revelation emerged during Murphy's testimony in defense of Google during the ongoing antitrust trial.
Google has consistently paid to secure its position as the default search engine in Safari and other browsers, such as Firefox, with a substantial investment of $26.3 billion in 2021 alone. Of this amount, $18 billion was directed to Apple. The specific details of this financial arrangement had been undisclosed until Murphy's testimony, despite Google's efforts to maintain confidentiality.
Tensions rose during questioning, with Epic Games' lawyer, Lauren Moskowitz, pressing Pichai to confirm that Google shared 36% of its ad revenue from Safari search queries with Apple in 2021. This revelation adds complexity to the ongoing Google 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. The trial also delved into the lucrative nature of the Play Store, revealing an operating profit of $4.4 billion during the first half of 2020.
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Moreover, Google CEO Sundar Pichai underscored that the revenue-sharing model benefits developers, with 97% of software developers on Google Play not paying fees. As quoted by AP News, Pichai noted: "The way we designed Google Play is that we do well only when developers do well."
Google's Relationship with Apple Under Fire
Pichai's recent testimony occurred a fortnight after his appearance in a distinct antitrust trial in Washington, DC. This separate legal proceeding revolves around allegations from the Justice Department asserting that Google has hindered competition and innovation by exploiting its dominant search engine, which played a pivotal role in the internet company's launch in 1998, per Fortune.
Even though these Google antitrust trials are taking place in different areas and are looking at different aspects of Google, an investment giant valued at $1.7 trillion, they all have at least two things in common: Google's huge impact and its unique relationship with Apple.
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