Google condemned for abusive practices towards mobile application developers


Alexander Boero

March 29, 2022 at 2:30 p.m.

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Google logo © Alexandre Boero for Clubic

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Google will have to modify the clauses imposed on developers after being sentenced on Monday by the Paris Commercial Court.

The Mountain View firm was thus fined a so-called “civil” fine (pronounced for the benefit of the Treasury) in the amount of 2 million euros. Imposed by judgment of the Commercial Court of Paris, this fine comes to sanction abusive commercial practices carried out by Google towards the developers of mobile applications. Consequently, the American company must modify several clauses of its distribution contract.

Google imposed clauses on developers without real negotiation

The condemnation of Google, relayed by our colleagues from AFP, follows its summons by the DGCCRF, the Directorate General for Competition, Consumer Affairs and Fraud Prevention. The latter, which dates back to 2018, was then supported by the Ministry of Economy and Finance.

At the time, Bruno Le Maire criticized Google for imposing its prices on French start-ups that wanted to sell their applications on its platforms, but also to recover their data and be able to ” unilaterally change contracts which was one grievance too many.

The commercial court of the capital considers, in its judgment, that the distribution contract reserved for developers included no less than seven disputed clauses, all imposed ” without effective negotiation “. The court, which refers to facts dating back to 2015 and 2016, ruled that these clauses ” reflect the submission or attempt to submit application developers to obligations creating a significant imbalance in the rights and obligations of the parties “.

One of the clauses pointed out actually required developers to apply the prices of their applications while respecting a price range previously defined by Google. The search engine company then took a 30% commission on each sale made on its application store, the Play Store.

The American giant has taken the lead

Referring to the ” severity of practices » denounced and condemned, the court imposed this fine of 2 million euros on Google, accusing the company of having carried « breach of economic public order “. In addition to this fine of a relatively ridiculous amount, Google will have to modify the clauses concerned within three months.

The company, for its part, reacted by stating that Android and Google Play give developers more choice than any other platform, and the ability to reach an ever-growing audience “. The company has already modified several clauses denounced in the decision. It has also lowered its commission for subscriptions, but also for small developers.

Google’s historic competitor, Apple, is still awaiting a decision caused by a seizure from the DGCCRF, which assigned the brand to the apple in 2018 for similar facts.

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DMA: Tech giants warned! Parliament and Member States agree, the details of the text

Source: AFP, France 24



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