Google 'generated €9.4bn in revenue from app store'

Alphabet-owned Google generated $11.2bn (€9.4bn) in revenue from its mobile app store in 2019, according to a US court filing unsealed over the weekend, offering a clear view into the service's financial results for the first time.

Attorneys general for Utah and 36 other US states or districts are suing Google over alleged competition violations with the app store. 

They also said in the newly unredacted filing that the Google app business in 2019 had $8.5bn in gross profit and $7bn in operating income, for an operating margin of over 62%.

The figures include sales of apps, in-app purchase, and app store ads. 

Google told Reuters the data "are being used to mischaracterise our business in a meritless lawsuit".

The company and its accusers said in a separate filing on Saturday a trial in late 2022 is possible over whether Google abuses its alleged monopoly in app sales for Android devices.

In its quarterly financial disclosures, Google groups Play app revenue with that of other services and accounts for the store's ad revenue as part of another broader category.

'Huge profits'

Attorneys general, as well as mobile app developer Epic Games and others separately suing Google, have contended that it generates huge profits through the Play Store.

They claim Google is taking 30% of the fee for every digital good sold inside an app. 

The plaintiffs say Google's cut is arbitrarily high, siphoning app developers' profits.

Google argues that alternatives exist to Google's store and payment systems.

However, critics say those routes are unfeasible and were sometimes blocked.

Plaintiffs allege Google, through anti-competitive deals, extended benefits to and imposed restrictions on major developers such as League of Legends maker Riot Games to keep them from leaving the Play Store.

A filing by Epic Games unsealed this month said Google, according to internal documents, feared losing $1.1bn in annual app store profit if the Play Store was successfully bypassed. 

The Fortnite developer alleges Google signed with phone makers and other top video game companies. 

• Reuters