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Google CEO Sundar Pichaiwas earlier this week summoned to federal court for the second time in two weeks to testify in an antitrust trial. In his latest court appearance in San Francisco, Pichai spent more than two hours defending the business practices of the company’s app store, Google Play Store. Pichai’s latest testimony came 15 days after he travelled to Washington, DC, to take the stand in a separate antitrust trial revolving around the Justice Department’s allegations that Google has stifled competition and innovation by abusing the power of its dominant search engine.Although the two trials are delving into different parts, they are touching upon at least two common issues: Google’s immense power and its unusual relationship with Apple.
What is the case about
The maker of the popular video game Fortnite, Epic Games, is trying to convince the jury that a Google Play payment processing system is illegally hurting consumers and software developers. Google collects a 15% to 30% commission from in-app purchases. Epic claimed that Google uses its market muscle to thwart competing Android app stores. This the game developer claimed drives up prices and discourages innovation. It is similar to a previous case that Epic brought against Apple.
Pichai was largely calm, but did look frustrated at times
Pichai looked at times frustrated with questioning, but largely maintained a calm demeanour
At times, Pichai, known to be soft spoken, looked nonplussed and frustrated by the confrontational questioning he faced. Other times he came across as a professor explaining complex subjects to the trial’s 10-person. Pichai largely stood at the podium as he is said to have difficulty sitting for prolonged periods.
Why Apple is both Google foe and ally in this case
Apple has been depicted as both Google’s foe and ally in this trial. A key part of Google’s defence against allegations that its Play Store is running an illegal monopoly on Android apps hinges on the assertion that the company faces major competition from Apple’s iPhone, iOS and App Store.
Meanwhile, the Justice Department’s case against Google in Washington is focused largely on deals that the company negotiated with Apple to ensure Google’s search engine automatically fields queries entered on iPhones and Apple’s Safari browser.
After recent testimony from an expert witness in the Washington antitrust trial revealed Google shared 36% of its ad revenue from Safari search queries with Apple in 2021, Pichai was forced to confirm the figure under often combative questioning by Epic lawyer Lauren Moskowitz.
When things got “tense” between Epic’s lawyer and Pichai
Things got so tense that before recessing for a short break, US District Judge James Donato described the back-and-forth between Epic’s lawyer and Pichai as a “rocking 75 minutes.” Before the testimony began, Donato had granted Moskowitz’s request to disclose the precise amount of money that Google paid Apple in 2021 over objections from both Google and Apple lawyers, but she never got that specific.
Instead, Moskowitz got Pichai to acknowledge that Apple received the bulk of the $26.3 billion that Google paid for all of its 2021 deals that locked in its search engine as the automatic handler of queries on smartphones and web browsers. Analysts have estimated Apple’s annual take from Google to be in the range of $15 billion to $20 billion.
Moskowitz also pointed out that Apple’s 36% cut from Google’s search ad revenue in the Safari browser was more than twice the 16% rate paid to Samsung, the biggest seller of Android smartphones. That point seemed to be aimed at painting Apple as one of Google’s biggest business partners, rather than a major competitor.
Pichai never wavered from his stand that Google and Android “fiercely” compete with Apple
Although Pichai sometimes seemed to be caught off balance by Epic lawyer’s aggressive questioning, he never wavered from his stand that Google and Android compete “fiercely” with Apple and the iPhone. He strongly asserted that the rivalry has given consumers more choices and driven down prices.
“We enable more affordable smartphones,” Pichai said of Android, which Google gives away to Samsung and other smartphone manufacturers for free in exchange for putting the company’s search engine and other services, such as its Play Store, on the devices. That, Pichai added, “is very different from what Apple does.”
He also pointed out that 97% of software developers with apps in Google Play don’t pay any fees at all because they either don’t sell digital goods or don’t generate enough revenue to reach the threshold that triggers the commissions. “The way we designed Google Play is we do well only when developers do well,” Pichai said.
(With agency inputs)
What is the case about
The maker of the popular video game Fortnite, Epic Games, is trying to convince the jury that a Google Play payment processing system is illegally hurting consumers and software developers. Google collects a 15% to 30% commission from in-app purchases. Epic claimed that Google uses its market muscle to thwart competing Android app stores. This the game developer claimed drives up prices and discourages innovation. It is similar to a previous case that Epic brought against Apple.
Pichai was largely calm, but did look frustrated at times
Pichai looked at times frustrated with questioning, but largely maintained a calm demeanour
At times, Pichai, known to be soft spoken, looked nonplussed and frustrated by the confrontational questioning he faced. Other times he came across as a professor explaining complex subjects to the trial’s 10-person. Pichai largely stood at the podium as he is said to have difficulty sitting for prolonged periods.
Why Apple is both Google foe and ally in this case
Apple has been depicted as both Google’s foe and ally in this trial. A key part of Google’s defence against allegations that its Play Store is running an illegal monopoly on Android apps hinges on the assertion that the company faces major competition from Apple’s iPhone, iOS and App Store.
Meanwhile, the Justice Department’s case against Google in Washington is focused largely on deals that the company negotiated with Apple to ensure Google’s search engine automatically fields queries entered on iPhones and Apple’s Safari browser.
After recent testimony from an expert witness in the Washington antitrust trial revealed Google shared 36% of its ad revenue from Safari search queries with Apple in 2021, Pichai was forced to confirm the figure under often combative questioning by Epic lawyer Lauren Moskowitz.
When things got “tense” between Epic’s lawyer and Pichai
Things got so tense that before recessing for a short break, US District Judge James Donato described the back-and-forth between Epic’s lawyer and Pichai as a “rocking 75 minutes.” Before the testimony began, Donato had granted Moskowitz’s request to disclose the precise amount of money that Google paid Apple in 2021 over objections from both Google and Apple lawyers, but she never got that specific.
Instead, Moskowitz got Pichai to acknowledge that Apple received the bulk of the $26.3 billion that Google paid for all of its 2021 deals that locked in its search engine as the automatic handler of queries on smartphones and web browsers. Analysts have estimated Apple’s annual take from Google to be in the range of $15 billion to $20 billion.
Moskowitz also pointed out that Apple’s 36% cut from Google’s search ad revenue in the Safari browser was more than twice the 16% rate paid to Samsung, the biggest seller of Android smartphones. That point seemed to be aimed at painting Apple as one of Google’s biggest business partners, rather than a major competitor.
Pichai never wavered from his stand that Google and Android “fiercely” compete with Apple
Although Pichai sometimes seemed to be caught off balance by Epic lawyer’s aggressive questioning, he never wavered from his stand that Google and Android compete “fiercely” with Apple and the iPhone. He strongly asserted that the rivalry has given consumers more choices and driven down prices.
“We enable more affordable smartphones,” Pichai said of Android, which Google gives away to Samsung and other smartphone manufacturers for free in exchange for putting the company’s search engine and other services, such as its Play Store, on the devices. That, Pichai added, “is very different from what Apple does.”
He also pointed out that 97% of software developers with apps in Google Play don’t pay any fees at all because they either don’t sell digital goods or don’t generate enough revenue to reach the threshold that triggers the commissions. “The way we designed Google Play is we do well only when developers do well,” Pichai said.
(With agency inputs)
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