Google CEO Sundar Pichai appeared in federal court for the second time in two weeks, this time in San Francisco, to testify in an antitrust trial targeting the Google Play Store. Pichai spent over two hours defending the business practices of the Play Store, which hosts apps for Google's Android software. The trial, brought by Epic Games, the creator of Fortnite, claims that Google's payment processing system, which collects a 15% to 30% commission from in-app purchases, is hurting consumers and software developers. Epic alleges that Google uses its market power to stifle competing Android app stores, driving up prices and discouraging innovation. This case is reminiscent of a previous trial brought by Epic against Apple, which is now being seen as a Google ally in this trial.

During the court appearance, Pichai appeared both nonplussed and frustrated by the confrontational questioning. At times, he came across as a professor, explaining complex subjects to the 10-person jury located just a few feet away. Pichai was allowed to use a podium due to his difficulty sitting for extended periods.

This trial comes 15 days after Pichai's testimony in a separate antitrust trial in Washington, D.C., where the U.S. Justice Department accused Google of stifling competition and innovation through the dominance of its search engine. Despite the different locations and focus of the trials, they raise common issues: Google's immense power and its relationship with Apple.

In its defense against the monopoly allegations regarding the Play Store, Google argues that it faces significant competition from Apple's iPhone, mobile operating system, and app store. However, the Justice Department's case in Washington primarily revolves around deals between Google and Apple, ensuring that Google's search engine automatically handles queries on iPhones and Apple's Safari browser.

During the trial, an expert witness revealed that Google shared 36% of its ad revenue from Safari search queries with Apple in 2021. Pichai was forced to confirm this figure during questioning by Epic's lawyer, Lauren Moskowitz. The tension between Moskowitz and Pichai grew to the point that U.S. District Judge James Donato described it as a "rocking 75 minutes" before a short recess.

Although Moskowitz did not disclose the precise amount of money Google paid Apple in 2021 as requested, she did establish that Apple received the majority of the $26.3 billion Google paid to solidify its search engine's position on smartphones and web browsers. Analysts estimate that Apple's annual take from Google ranges from $15 billion to $20 billion. Moskowitz also highlighted that Apple's 36% cut from Google's search ad revenue in Safari was over twice the 16% rate paid to Samsung, a top Android smartphone seller. This point aimed to portray Apple as a significant Google business partner rather than a competitor.

Despite the aggressive questioning, Pichai consistently emphasized that Google and Android fiercely compete with Apple and the iPhone. He argued that this rivalry benefits consumers by increasing choices and driving down prices. Pichai stated that Android is provided to smartphone manufacturers like Samsung for free, in exchange for featuring Google's search engine and services on their devices-differentiating this from Apple's business model.

The shadow of Apple looms over the Play Store in other ways, as Epic Games previously lost a 2021 trial against the payment system of Apple's app store. While the judge primarily sided with Apple in that case, it did create an opening for apps to provide links to alternative payment options, potentially undermining the commissions collected by both Apple and Google on digital purchases within mobile apps. Apple is appealing this ruling to the U.S. Supreme Court.

Pichai's testimony also shed light on the profitability of the Play Store. In the first half of 2020, the store generated an operating profit of $4.4 billion. Pichai clarified that this figure did not consider the billions of dollars Google invests in the Android operating system, which provides alternatives to the iPhone. He also highlighted that 97% of software developers on Google Play do not pay any fees because they either do not sell digital goods or generate insufficient revenue to trigger the commissions. Pichai emphasized that Google's success is intertwined with that of the developers on the platform, stating, "The way we designed Google Play is we do well only when developers do well.".