In re Google Play Consumer Antitrust Litigation

District Court, N.D. California·Decided November 28, 2022·No. 3:20-cv-05761·Unknown

Opinion

In re Google Play Store Antitrust Litigation Case No. 21-md-02981-JD

ORDER RE CONSUMER PLAINTIFFS’ CLASS CERTIFICATION MOTION AND DEFENDANTS’ MOTION TO EXCLUDE EXPERT TESTIMONY Re: Dkt. Nos. 280, 282

(Case No. 20-cv-05761-JD)

This action by consumer plaintiffs is one of several antitrust cases about the Google Play Store. These cases have been consolidated into a multidistrict litigation (MDL) for centralized proceedings before this Court. Dkt. No. 1.1 The named plaintiffs allege, on behalf of themselves and multiple putative classes of consumers, that defendant Google illegally monopolized the Android app distribution market with anticompetitive practices in the Google Play Store. Google’s motion to exclude the testimony of plaintiffs’ economics expert is denied. The consumers’ motion for class certification is granted in main part, subject to some adjustments of the named plaintiffs. Dkt. Nos. 251, 252. The consumer case is itself a consolidated action. Before it was made a part of the MDL, the Court consolidated a number of related consumer cases under the caption, In re Google Play 1 Unless otherwise noted, all docket number references are to our district’s ECF docket for the multidistrict litigation case, No. 21-md-02981-JD. For present purposes, the Court will cite to the Consumer Antitrust Litigation. Consumer Dkt. No. 78.2 The Court appointed on an interim basis co-lead class counsel, liaison counsel, and a steering committee to manage the consumer side of the litigation. Consumer Dkt. No. 128. The operative complaint for the consumers is the consolidated second amended class action complaint. Dkt. No. 172 (SAC). The named plaintiffs are six consumers in the states of California, Massachusetts, New York, Washington, Wisconsin, and Georgia, all of whom purchased mobile apps through the Google Play Store or paid for in-app digital content for one of those apps. Id. ¶¶ 23-29; Consumer Dkt. No. 259. The defendants are Google, LLC, Google Ireland Limited, Google Commerce Limited, Google Asia Pacific Pte. Limited, and Google Payment Corp. (together, Google). SAC ¶¶ 32-36. The thrust of the SAC is that Google has unlawfully acquired and maintained a monopoly in the Android app distribution market through anticompetitive practices in the Google Play Store. The Google Play Store is said to be the “dominant” distribution channel for mobile apps to Android device users. Id. ¶ 51. The Play Store features “over three million apps, including all the most popular Android apps,” compared to “just 700,000 apps offered by Aptoide, the Android app store with the next largest listing.” Id. ¶ 82. According to the SAC, “Google’s market power results in enormous profits,” and “[i]n 2020 alone, the Google Play Store generated revenues of $38 billion, accounting for over 20 percent of the company’s total revenue in that year of $182 billion.” Id. ¶ 86. Plaintiffs allege that “Google has willfully and unlawfully maintained its monopoly in the Android Application Distribution Market through a series of related anticompetitive acts designed to foreclose alternative and competing Android app distribution channels.” Id. ¶ 111. The anticompetitive acts include requiring OEMs to preinstall and prominently place the Google Play Store on the Android devices they manufacture; requiring mobile network operators, in return for a share of Google’s revenues, to preload the Google Play Store in a prominent position on all Android mobile devices that they distribute; and prohibiting developers who sell their apps through the Google Play Store from providing any apps that would allow consumers to download a competing app distribution store. Id. ¶¶ 112-54. Plaintiffs say that Google’s monopoly power allowed it to charge a “supra-competitive commission of up to 30% on the price of apps purchased through the Google Play Store and in- app purchases processed through Google Play Billing,” the use of which is mandated by Google for all apps that are distributed through the Play Store. Id. ¶ 84. Plaintiffs purchased Android apps and made in-app purchases “directly from Google,” and so were harmed by paying artificially inflated prices for the apps. Id. ¶¶ 208-11. The SAC identifies three product markets -- “(1) the Licensable Mobile Operating System Market; (2) the Android Application Distribution Market; and (3) the In-App Aftermarket,” SAC ¶ 41 -- but alleges claims only with respect to the latter two. These claims are six counts against Google under Sections 1 and 2 of the Sherman Act, 15 U.S.C. §§ 1, 2, for unlawful monopolization, unreasonable restraints of trade, and unlawful tie-in in the Android Application Distribution Market and In-App Aftermarket, id. ¶¶ 221-79; four counts under the California Cartwright Act, Cal. Bus. & Prof. Code § 16700 et seq., for unreasonable restraints of trade and unlawful tie-in in the same two markets, id. ¶¶ 282-328; and one count under the California Unfair Competition Law (UCL), Cal. Bus. & Prof. Code § 17200 et seq., for unlawful, unfair, and fraudulent business practices, id. ¶¶ 329-62. The requested relief consists of “treble damages for injuries caused by defendants’ violations of the federal antitrust laws and California’s Cartwright Act,” restitution under the UCL, and a conduct injunction. Id. at 74. Plaintiffs’ motion for class certification, Dkt. No. 251, proposes classes that are somewhat different from those in the SAC. The SAC named a nationwide class or, in the alternative, a “repealer-state class.” SAC ¶¶ 213, 220, 280-81.3 The motion asks for certification of a smaller

3 The SAC says that the “repealer-state class” consists of individuals in “those states whose laws permit indirect purchaser standing and provide for antitrust recovery to indirect purchasers.” SAC ¶ 213. Plaintiffs have abandoned the “‘repealer states’ class” because “Google has consistently included a choice-of-law provision in its user agreements designating California law as controlling in litigation brought by users,” and so “California law governs the state law claims of all class group, mainly because plaintiffs have entered into a Joint Prosecution Agreement with the Attorneys General of the 38 states and the District of Columbia, who are plaintiffs in State of Utah et al. v. Google, No. 21-cv-05227-JD, which is another constituent case in this MDL. Plaintiffs advised the Court that, “[t]o pursue consumers’ claims against Google most effectively and efficiently, plaintiffs’ counsel and the thirty-nine Attorneys General asserting parens patriae claims” have “agreed in the Joint Prosecution Agreement that class certification would be sought” in the consumers’ case “only for consumers in states, districts and territories that have not asserted a parens patriae claim” in the States case. Dkt. No. 251 at 3. In effect, plaintiffs and the Attorneys General agreed that plaintiffs would not pursue certification on behalf of state residents represented in the Attorneys General case. Plaintiffs propose certification of two classes for the Sherman Act, Cartwright Act, and UCL claims:

Rule 23(b)(3) Multistate Damages Class:

All persons in the following U.S. states and territories:

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