throbber
Case 3:22-cv-02746-JD Document 1 Filed 05/09/22 Page 1 of 91
`
`HUESTON HENNIGAN LLP
`John C. Hueston, State Bar No. 164921
`jhueston@hueston.com
`Douglas J. Dixon, State Bar No. 275389
`ddixon@hueston.com
`620 Newport Center Drive, Suite 1300
`Newport Beach, CA 92660
`Telephone: (949) 229-8640
`
`Joseph A. Reiter, State Bar No. 294976
`jreiter@hueston.com
`Michael K. Acquah, State Bar No. 313955
`macquah@hueston.com
`William M. Larsen, State Bar No. 314091
`wlarsen@hueston.com
`Julia L. Haines, State Bar No. 321607
`jhaines@hueston.com
`523 West 6th Street, Suite 400
`Los Angeles, CA 90014
`Telephone: (213) 788-4340
`
`Attorneys for Plaintiffs Match Group, LLC;
`Humor Rainbow, Inc.; PlentyofFish Media ULC;
`and People Media, Inc.
`
`
`
`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF CALIFORNIA
`MATCH GROUP, LLC, a Delaware
`Case No.
`corporation; HUMOR RAINBOW, INC.,
`
`COMPLAINT FOR (1) VIOLATIONS
`a New York corporation;
`OF THE SHERMAN ACT;
`PLENTYOFFISH MEDIA ULC, a
`(2) VIOLATIONS OF THE
`Canadian corporation; and PEOPLE
`CARTWRIGHT ACT; (3) UNFAIR
`MEDIA, INC., a Delaware corporation,
`COMPETITION; (4) TORTIOUS
`
`INTERFERENCE WITH
`Plaintiffs,
`CONTRACT; AND (5) TORTIOUS
`
`INTERFERENCE WITH
`v.
`PROSPECTIVE ECONOMIC
`
`ADVANTAGE
`GOOGLE LLC; GOOGLE IRELAND
`
`LIMITED; GOOGLE COMMERCE
`
`LIMITED; GOOGLE ASIA PACIFIC
`DEMAND FOR JURY TRIAL
`PTE. LIMITED; and GOOGLE
`PAYMENT CORP.,
`
`Defendants.
`
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`6182535
`
`
`COMPLAINT
`
`
`
`

`

`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Case 3:22-cv-02746-JD Document 1 Filed 05/09/22 Page 2 of 91
`
`TABLE OF CONTENTS
`
`Page
`INTRODUCTION ...................................................................................................... 1
`
`PARTIES .................................................................................................................. 13
`JURISDICTION AND VENUE ............................................................................... 14
`DIVISIONAL ASSIGNMENT ................................................................................ 15
`BACKGROUND ...................................................................................................... 15
`A. Match Group Provides Popular Online Dating Services ..................... 15
`B. Google Has Monopolized the Marketplace for Mobile and
`Licensable Operating Systems ............................................................. 19
`C. Google Has Unlawfully Maintained a Monopoly in the
`Market for Distribution of Android Apps ............................................ 21
`D. Google Also Has Market Power in the Market for Dating
`App Distribution ................................................................................... 25
`Google Devises and Uses Exclusionary Contracts, Illegal
`Tying, and Predatory Practices to Block Competitors and
`Ensure Google Play’s Dominance ....................................................... 28
`1.
`Google Uses Exclusionary Contracts with OEMs ..................... 29
`2.
`Google Uses Exclusionary Contracts with App
`Developers ................................................................................. 31
`Google Uses Payment Incentives and Predatory
`Practices ..................................................................................... 32
`Google Uses Technological Roadblocks, Contractual
`Restrictions, and False Information to Make Direct
`App Downloads Impractical ...................................................... 36
`Google’s Anti-Competitive Conduct Destroys
`Competition in the Android App Distribution Market
`or, Alternatively, the Dating App Distribution
`Market ........................................................................................ 39
`Google Unlawfully Seized and Maintains a Monopoly in
`the Market for Android App In-App Payment Processors .................. 41
`Google Uses Illegal Ties and Exclusive Contracts to
`1.
`Mandate Use of Google Play Billing ......................................... 44
`Google Abuses Its Monopoly Power by Imposing an
`Arbitrary and Unconscionable Tax on Consumers
`and App Developers................................................................... 46
`- i -
`COMPLAINT
`
`E.
`
`F.
`
`
`6182535
`
`
`3.
`
`4.
`
`5.
`
`2.
`
`
`
`

`

`Case 3:22-cv-02746-JD Document 1 Filed 05/09/22 Page 3 of 91
`
`TABLE OF CONTENTS (cont.)
`
`Page
`
`3.
`
`I.
`
`J.
`
`Google’s Conduct Destroys Competition in the
`Android App IAP Market and Harms Consumers and
`App Developers ......................................................................... 51
`G. Match Group Offers Consumers an Alternative and
`Competitive In-App Payment Option .................................................. 53
`H. Google Allows Match Group’s Apps to Remain on Google
`Play, Recognizing That Match Group’s Payment Options
`Do Not Violate Google’s Policies ........................................................ 55
`Abusing its Monopoly Power, Google Abruptly Changed
`Its Policies ............................................................................................ 58
`Google’s Anti-Competitive Conduct Has Irreparably
`Harmed Match Group and its Customers ............................................. 64
`FIRST CAUSE OF ACTION ................................................................................... 66
`SECOND CAUSE OF ACTION .............................................................................. 68
`THIRD CAUSE OF ACTION .................................................................................. 69
`FOURTH CAUSE OF ACTION .............................................................................. 71
`FIFTH CAUSE OF ACTION ................................................................................... 73
`SIXTH CAUSE OF ACTION .................................................................................. 75
`SEVENTH CAUSE OF ACTION ............................................................................ 76
`EIGHTH CAUSE OF ACTION ............................................................................... 78
`NINTH CAUSE OF ACTION .................................................................................. 79
`TENTH CAUSE OF ACTION ................................................................................. 81
`ELEVENTH CAUSE OF ACTION ......................................................................... 83
`TWELFTH CAUSE OF ACTION ........................................................................... 84
`THIRTEENTH CAUSE OF ACTION ..................................................................... 86
`PRAYER FOR RELIEF ........................................................................................... 87
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`6182535
`
`- ii -
`COMPLAINT
`
`
`
`

`

`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Case 3:22-cv-02746-JD Document 1 Filed 05/09/22 Page 4 of 91
`
`
`
`INTRODUCTION1
`This is a case about the strategic manipulation of markets, broken
`1.
`promises, and abuse of power that Google LLC2 has employed to illegally foreclose
`competition in the world’s biggest mobile device ecosystem, Android, and become
`one of the largest, most powerful companies in the world. Google convinced billions
`around the world to use the Android mobile operating system (“Android” or “Android
`OS”) on promises of an open ecosystem, flexibility, and a focus on the user. Through
`those platitudes and promises and the anticompetitive tactics detailed in this
`complaint, Google illegally monopolized the market for distributing apps on Android
`devices with its Google Play Store (“Google Play”)—making it today the only viable
`choice a mobile application (“app”) developer has to reach Android users. Now,
`Google seeks to eliminate user choice of payment services and raise prices on
`consumers by extending its dominance to the separate market for in-app payment
`(“IAP”) processors on Android. It is conditioning app availability on Google Play
`with exclusive use of its own in-app payment processing product, Google Play
`Billing, where it can charge supra-competitive prices and monetize the personal data
`of billions of digital app users.
`Ten years ago, Match Group was Google’s partner. We are now
`2.
`its hostage. Google lured app developers to its platform with assurances that we could
`offer users a choice over how to pay for the services they want. But once it
`monopolized the market for Android app distribution with Google Play by riding the
`coattails of the most popular app developers, Google sought to ban alternative in-app
`
`
`1 For the purposes of this complaint, the term “Match Group” includes only the operating entities
`named as Plaintiffs. Match Group LLC; Humor Rainbow, Inc.; PlentyofFish Media ULC; and People
`Media, Inc. are part of the Match Group family of companies with the ultimate parent company
`Match Group, Inc. (“MGI”), a nonoperating holding company. MGI’s other subsidiaries are not
`included in the definition of “Match Group” in this complaint. Match Group asserts the allegations
`in this complaint upon personal knowledge as to itself and its own acts and experiences and, as to all
`other matters, upon information and belief, including an investigation conducted by its attorneys.
`2 Unless noted otherwise, throughout this complaint, “Google” refers to Google LLC and all other
`Google entity defendants.
`
`
`6182535
`
`- 1 -
`COMPLAINT
`
`
`
`

`

`Case 3:22-cv-02746-JD Document 1 Filed 05/09/22 Page 5 of 91
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`payment processing services so it could take a cut of nearly every in-app transaction
`on Android. This Complaint lays bare Google’s misdeeds that made it possible.
`Google monetizes Android, in part, by operating Google Play and a
`3.
`separate in-app payment processing service called Google Play Billing. Over the last
`decade, through bait and switch tactics that exploited the very app developers it so
`ardently courted and claimed to support and by paying off potential competitors not
`to compete, Google has grown Google Play into the only viable Android app
`marketplace. If a developer wants users to find its app, that app must be on Google
`Play.
`But that was not enough for Google. It also wanted to control the much
`4.
`more lucrative in-app payment processing market on Android. Every year, consumers
`spend tens of billions of dollars on Android apps. And that number increases every
`year. When those transactions involve the purchase of “digital goods or services”
`using Google Play Billing, Google keeps as much as 30% for itself. Google
`disingenuously calls this extortionate tax a “fee” even though it is nearly ten times the
`actual fees other payment processors charge in competitive marketplaces.
`Further, what constitutes a “digital good or service” is ill-defined and
`5.
`arbitrarily applied. Clothing and food delivery and ride sharing apps do not qualify.
`But Match Group’s dating apps do qualify, even though they enable users to meet in
`the real world for a date, just like a ride sharing app enables a user to find a driver in
`the real world for a ride.
`Google’s “fee” also bears no relation to the cost or value of services
`6.
`Google provides developers. Indeed, all developers with apps on Google Play benefit
`from the exact same services, and they all pay Google a $25.00 registration fee. Yet
`only the small handful who sell “digital goods and services,” again, as arbitrarily
`defined by Google, pay the Google tax, which results in pure non-competitive profit
`to Google. It also allows Google to collect massive volumes of user data that Google
`can then monetize.
`
`
`6182535
`
`- 2 -
`COMPLAINT
`
`
`
`

`

`Case 3:22-cv-02746-JD Document 1 Filed 05/09/22 Page 6 of 91
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Blinded by the possibility of getting an ever-greater cut of the billions of
`7.
`dollars users spend each year on Android apps, Google set out to monopolize the
`market for how users pay for their Android apps. But it had to be sly in the way it
`went about doing so.
`After acquiring Android, Google knew that its growth depended on
`8.
`Android and Google Play offering the most popular apps to users. So to entice
`developers to offer their apps through Google Play, Google historically allowed many
`app developers to offer their own payment processing services for in-app purchases
`or offer those services alongside Google Play Billing. While Google required the
`purchase price to be the same regardless of the payment service employed, this gave
`users and developers a choice. Developers who were satisfied with Google’s one-
`size-fits-all Google Play Billing service could utilize it. But for developers for whom
`Google Play Billing was not a good fit—for example, because it restricted
`subscription payment plans or did not allow developers to provide discounts—they
`could opt to offer their own payment processing system. And such developers spent
`considerable time, effort, and money doing just that, and most users appreciated
`the choice. This included several of Match Group’s brands.
`9. Match Group, LLC; Humor Rainbow, Inc.; PlentyofFish Media ULC; and
`People Media, Inc. (collectively, “Match Group”) operate popular dating apps,
`including Match Group, LLC’s Tinder®, the world’s most popular dating app. Match
`Group started the online dating category back in 1995 and has been instrumental in
`making the dating app industry an important and everyday part of a single’s dating
`experience. Match Group’s platforms are responsible for millions of marriages,
`relationships, and families. And, although Match Group’s dating apps have been
`available on Android for many years, they did not always offer the ability to make in-
`app purchases because Google Play Billing lacked features that are important to
`consumers and that Match Group’s web-based payment solutions had offered for
`years. Google recognized, however, that once Match Group offered in-app purchases
`- 3 -
`
`COMPLAINT
`
`
`6182535
`
`

`

`Case 3:22-cv-02746-JD Document 1 Filed 05/09/22 Page 7 of 91
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`through Android apps, even if it was through Match Group’s own payment system,
`customers would become accustomed to paying inside the app, making it difficult for
`Match Group to redirect users to purchase subscriptions and upgrades outside the
`app—e.g., on Match Group websites. This would increase the propensity of users to
`only use the Android app and further entrench the Android ecosystem, all of which
`benefits Google’s bottom line.
`10. So Google assured Match Group that if it enabled in-app purchases in its
`dating apps on Android, Match Group could use its own payment systems for in-app
`purchases, whether on their own or alongside Google Play Billing. And Match Group
`went along. On some apps, Match Group launched in-app purchases on Android
`using both Google Play Billing and its own in-house payment processing system. But
`Match Group learned that users in the United States prefer to use Match Group’s own
`payment services over Google Play Billing a majority of the time, as demonstrated on
`Match Group’s Tinder app.
`11. Similarly, despite building Android on promises of being an “open”
`ecosystem, over time, Google has forced original equipment manufacturers
`(“OEMs”) to accept contractual limitations requiring them to give Google Play
`insurmountable advantages over competing app stores. For example, Google required
`OEMs to pre-install Google Play on the home screen of every Android device in
`exchange for access to essential Google services. Google also developed a program
`whereby OEMs received a percentage of Google’s search and Google Play Billing
`revenue if they provided Google Play exclusively. Google also limits access to
`competing app stores by imposing technological restraints on Android OS users.
`12. Fast-forward to 2022. Android is now the dominant licensable mobile
`operating system (“OS”) in existence and used by nearly 70% of all smart mobile
`devices globally. And Google Play is equally dominant, processing over 90% of all
`Android app downloads across the globe: Android device users downloaded apps
`from Google Play more than 111 billion times last year—translating to nearly $48
`- 4 -
`
`COMPLAINT
`
`
`6182535
`
`

`

`Case 3:22-cv-02746-JD Document 1 Filed 05/09/22 Page 8 of 91
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`billion in app revenue through Google Play in 2021.3 No competing Android app
`store has more than 5% of the market.
`13. With total domination of the Android app distribution market now in
`hand, Google turned to its goal of monopolizing the in-app payment processing
`market. In 2020, Google announced that it would require all apps that sell its vaguely
`defined “digital goods and services” to use Google Play Billing exclusively starting
`in September 2021. No more alternatives to Google Play Billing would be allowed.
`No more user choice. It is Google Play Billing or nothing for users and app
`developers. And the punishment for noncompliance is severe: banishment from
`Google Play.
`14. Google’s policy change eliminated the promised exception that had
`previously enticed Match Group and other popular apps—like streaming services—
`to offer in-app purchases and spend time, effort, and money to develop their own in-
`app payment systems. Now that Google controlled the only real choice for developers
`to market their apps to Android users, Google held all the power and no longer needed
`their support.
`15. Google’s motivation is obvious: monopolizing the Android in-app
`payment processing market allows Google to impose a 15-30% tax on the billions of
`dollars users spend on so-called “digital goods or services” on Android. The timing
`is obvious, too, given Google’s lackluster financial performance in the first quarter of
`2022. That tax comes out of the pockets of consumers in the form of higher prices
`and the revenue that app developers would and should otherwise earn for the sale of
`their services. Monopolizing the in-app payment processing market also allows
`Google to collect reams of sensitive consumer data—such as consumer identities and
`pricing, credit card information, propensity to purchase dating services, etc.—that
`Google can further monetize, as well as use to build competing apps or services.
`
`3 See Statista, Worldwide gross app revenue of Google Play from 2016 to 2021, available online at
`https://www.statista.com/statistics/444476/google-play-annual-revenue/ (last visited Apr. 26, 2022).
`- 5 -
`
`COMPLAINT
`
`
`6182535
`
`

`

`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Case 3:22-cv-02746-JD Document 1 Filed 05/09/22 Page 9 of 91
`
`
`
`16. Google further ensures that such transactions only occur on Google Play
`Billing by including onerous, one-sided terms in its developer agreements. Google’s
`developer agreement is an adhesion contract—in other words, Google dictates the
`terms and app developers can either agree to Google’s terms or be excluded. One of
`those terms is an anti-steering provision, which prohibits developers from
`communicating with users inside their apps about a user’s ability to purchase upgrades
`or additional functionality outside the app, including at lower prices, through, for
`example, the developer’s own website.
`17. Google therefore controls it all: the dominant marketplace for Android
`apps; the only means to purchase apps in the marketplace; and the messaging inside
`the marketplace so that consumers cannot learn of lower-priced options elsewhere.
`18. Match Group is not the first to sound the alarm on Google’s unlawful
`conduct, nor is it an isolated voice. Many other app developers, consumers and, more
`recently, a coalition of 37 state Attorneys General, have filed lawsuits condemning
`Google’s actions and seeking to prevent the same illegal conduct.4 Those lawsuits
`followed separate antitrust actions by the Department of Justice and states that
`challenged Google’s abuse of monopoly power in similar contexts.5 Other
`government investigations and entities, including the United States House of
`Representatives Judiciary Committee,6
`the United States Senate Judiciary
`
`
`4 See, e.g., State of Utah et al. v. Google LLC et al., Case No. 3:21-cv-05227-JD (N.D. Cal.); In Re
`Play Store Antitrust Litigation, Case No. 3:21-md-02981-JD (N.D. Cal.); Epic Games, Inc. v. Google
`LLC et al., Case No. 3:20-cv-05671-JD (N.D. Cal.).
`5 United States of America et al. v. Google LLC, Case No. 1:20-cv-03010-APM (D.D.C.); The State
`of Texas et al. v. Google LLC, Case No. 4:20-cv-00957-SDJ (E.D. Tex.).
`6 See Investigation of Competition in Digital Markets, Subcommittee on Antitrust, Commercial and
`Administrative Law of the Committee on the Judiciary at 213 (2020).
`- 6 -
`COMPLAINT
`
`
`
`
`6182535
`
`

`

`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Case 3:22-cv-02746-JD Document 1 Filed 05/09/22 Page 10 of 91
`
`
`
`Committee,7 the European Commission,8 the Competition Commission of India,9 the
`French Ministry of Finance,10 the German Federal Cartel Office,11 the Cabinet
`Secretariat of Japan,12 the United Kingdom Competition and Markets Authority,13 the
`Competition Commission of South Africa,14 the Australia Competition and Consumer
`Commission,15 and the Netherlands Authority for Consumers and Markets16 all have
`
`
`7 See Executive Business Meeting, U.S. Senate Committee of the Judiciary (Feb. 3, 2022),
`available online at https://www.judiciary.senate.gov/meetings/02/03/2022/executive-business-
`meeting-2 (last visited April 26, 2022).
`8 Press Release, Eur. Comm’n, Antitrust: Commission Fines Google €4.34 Billion for Illegal
`Practices Regarding Android Mobile Devices to Strengthen Dominance of Google’s Search Engine
`(July
`18,
`2018),
`available
`online
`at
`https://ec.europa.eu/commission/presscorner/detail/en/IP_18_4581 (last visited Apr. 26, 2022).
`9 See Economic Times, CCI to complete probe into Google Play Store policy within 60 days (Jan. 5,
`2022), available online at https://m.economictimes.com/tech/technology/cci-to-complete-probe-
`into-google-play-store-policy-within-60-days/articleshow/88717171.cms (last visited Apr. 26 2022);
`Economic Times, CCI probe finds Google’s Play Store billing guidelines ‘unfair’ and
`‘discriminatory’
`(Mar.
`31,
`2022),
`available
`online
`at
`https://economictimes.indiatimes.com/tech/technology/cci-probe-finds-googles-play-store-billing-
`guidelines-unfair-and-discriminatory/articleshow/90550596.cms (last visited Apr. 26, 2022).
`10 See Bloomberg, Google Slapped with French Fine Over Abusive App Store Practices (March 29,
`2022), available online at https://www.bloomberg.com/news/articles/2022-03-29/google-slapped-
`with-french-fine-over-abusive-app-store-practices (last visited Apr. 26, 2022).
`11 See Bloomberg Law, Google Subject to New, Tougher Supervision by German Regulator, available
`online
`at
`https://news.bloomberglaw.com/privacy-and-data-security/google-subject-to-new-
`tougher-supervision-by-german-regulator (last visited Apr. 26, 2022).
`12 See Nikkei Asia, Apple and Google under Antitrust Scrutiny in Japan for Mobile OS, available
`online at https://asia.nikkei.com/Business/Technology/Apple-and-Google-under-antitrust-scrutiny-
`in-Japan-for-mobile-OS (last visited Apr. 26, 2022).
`13 See United Kingdom Competition & Markets Authority, Mobile Ecosystems Market Study Interim
`Report
`(Updated
`Jan.
`26,
`2022),
`available
`online
`at
`https://www.gov.uk/government/publications/mobile-ecosystems-market-study-interim-
`report/interim-report (last visited Apr. 26, 2022).
`14 See George Herald, SA Publishers to Challenge Google and Meta Competition Commission,
`available
`online
`at
`https://www.georgeherald.com/News/Article/Business/sa-publishers-to-
`challenge-google-and-meta-at-competition-commission-202112070346 (last visited Apr. 26, 2022).
`15 See Reuters, Google Misled Consumers Over Data Collection—Australian Watchdog, available
`online at https://www.reuters.com/technology/australia-finds-google-misled-customers-over-data-
`collection-regulator-2021-04-16/ (last visited Apr. 26, 2022); Reuters, Australia Plans to Make
`Google Offer Alternative Search Engines on Smartphones,
`available online
`at
`https://www.reuters.com/technology/australia-plans-make-google-offer-alternative-search-engines-
`smartphones-2021-10-28/ (last visited Apr. 26, 2022).
`16 See Reuters, With Apple Fight Ongoing, Dutch Watchdog ACM to Investigate Google Play Store
`Practices, available online at https://www.reuters.com/technology/dutch-watchdog-acm-
`investigate-google-play-store-practices-2022-05-04/ (last visited May 9, 2022).
`- 7 -
`COMPLAINT
`
`
`
`
`6182535
`
`

`

`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Case 3:22-cv-02746-JD Document 1 Filed 05/09/22 Page 11 of 91
`
`scrutinized Google’s business practices and likewise concluded that Google has
`monopolized the Android app distribution market and engaged in improper tying and
`other anti-competitive acts.
`19. Many countries around the world have taken action in direct response to
`Google’s anti-competitive behavior. For example, the European Union recently
`reached agreement on the Digital Markets Act (“DMA”). Hailed as the “most
`sweeping legislation to regulate tech since the European privacy law was passed in
`2018,”17 the DMA places limitations and restrictions on “gatekeeper” platforms like
`Google by, among other things, requiring them to allow third-party payment options
`for in-app payments and alternative app stores and prohibiting discriminatory fees.
`Similarly, the government of Republic of Korea targeted Google’s exercise of
`monopoly power in the mobile app market by, among other things, amending the
`Telecommunications Business Act to prohibit platform operators like Google from
`forcing its IAP systems and levying discriminatory fees on app developers.
`20. Through all the enforcement actions and new regulation across the globe,
`it is clear that Google’s business model has either already been or soon will be
`declared illegal in roughly half the world. The entire world is recognizing that Google
`has manipulated laws passed to protect innovation, competition, and a free market in
`the most calculated manner to destroy innovation and competition.
`21. Despite scrutiny from governments, private plaintiffs, and antitrust
`authorities throughout the world, Google has continued to flout official sanctions with
`its anti-competitive and illegal conduct—displaying a disturbing disregard for
`consumers, developers, regulators, and established antitrust law alike. Google’s
`power, based on its own actions, is apparently unmitigated: Google has found it more
`profitable to pay fines or evade them through lengthy appeals, choosing to continue
`
`
`17 See The NYTimes, E.U. Takes Aim at Big Tech’s Power With Landmark Digital Act (March 24,
`2022), available online at https://www.nytimes.com/2022/03/24/technology/eu-regulation-apple-
`meta-google.html (last visited Apr. 26, 2022).
`
`
`6182535
`
`- 8 -
`COMPLAINT
`
`
`
`

`

`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`Case 3:22-cv-02746-JD Document 1 Filed 05/09/22 Page 12 of 91
`
`
`
`to engage in anti-competitive conduct by collecting its fees up to the last possible
`moment, rather than revise its policies that have been internationally rebuked for
`harming consumers.18
`Initially, it appeared that Google may have paid heed to its sinking
`22.
`reputation on the global stage. Google originally postponed its September 2021
`ultimatum for app developers to exclusively use Google Play Billing until March 31,
`2022. But as this new deadline approached, Google dug in its heels even as public
`lawsuits, investigations, regulatory orders, and new legislation cascaded against
`Google’s anti-competitive practices. Instead of changing its policies, it resorted to
`offering hush money to developers, including Match Group, in the form of hundreds
`of millions of dollars in credits and rebates (with myriad strings attached) to give up
`its own payment processor and stop advocating that government officials protect
`consumers and developers from Google’s harmful conduct. In fact, Google
`threatened to retract such an offer from Match Group, Inc. (“MGI”) on the eve of an
`MGI officer’s planned testimony about Google’s stranglehold on app developers
`before the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and
`Consumer Rights.
`23. Less than a week before Google’s March 31, 2022, deadline, Google
`announced a new “pilot program” (misleadingly) labeled “User Choice Billing.”
`Under this new “pilot program,” developers may offer a “choice” of billing platforms
`but with a catch: one of those options must be Google Play Billing and only Google
`determines who can participate in this new program. So far, the only developer
`Google selected appears to be Spotify, the popular music streaming service with
`hundreds of millions of active users. Match asked to participate, but, despite the fact
`that Match has offered users a choice of payment systems in its Android apps for
`
`
`18 The Associated Press, Google is Appealing a $5 Billion Antitrust Fine in the EU (Sept. 27, 2021),
`available online at https://www.npr.org/2021/09/27/1040889789/google-eu-android-appeal-antitrust
`(last visited Apr. 26, 2022) (citing the multi-year litigation and Google’s record-breaking penalty).
`- 9 -
`COMPLAINT
`
`
`
`
`6182535
`
`

`

`Case 3:22-cv-02746-JD Document 1 Filed 05/09/22 Page 13 of 91
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`nearly a decade, Google refused, telling Match that User Choice Billing is only a pilot
`program at a “very early stage” and that it could not confirm when or whether it would
`be expanded beyond Spotify. That is pretext.
`In reality, the User Choice Billing “pilot program” is nothing more than
`24.
`a political stunt designed to thwart regulatory scrutiny of Google Play Billing and a
`thinly veiled attempt to lure certain hold-out developers, like Spotify, to begin using
`Google Play Billing. To understand why Google has only offered this option to
`Spotify, all one has to do is follow the money. Spotify previously did not allow
`purchases on Android through its app because it refused to pay Google’s tax; instead,
`users who wished to purchase a Spotify subscription had to do so through Spotify’s
`website or desktop app. Now, through User Choice Billing, Google will be able to
`impose its tax on some portion of the hundreds of millions of dollars of Spotify
`subscriptions that will happen inside the Spotify Android app, where Google
`previously received nothing. With this context, it’s clear that User Choice Billing is
`nothing more than a Potemkin village erected to project the appearance of competitive
`freedom to regulators without presenting a genuine option to developers while finally
`giving Google access to revenues from Spotify’s highly valuable music streaming
`business. In truth, User Choice Billing demonstrates how little Google values
`transparency to consumers, developers, or regulators, let alone real market choice.
`25. And this is an old trick. As previously mentioned, Google has allowed
`developers like Match Group to offer users a choice of billing platforms for nearly a
`decade—and it continues to allow apps like Uber and Lyft to operate their own
`payment processors, despite the very limited differences between the services their
`apps offer (digitally connecting a driver and passenger for an in-real-life trip) and
`those offered by Match Group apps (digitally connecting two potential daters for an
`in-real-life date). Google’s announcement of a new exception less than eight days
`before its new general policy went into effect disallowing d

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket