Lachlan Murdoch asked Google chief to lift ban on start-up he backed

At the time of its ban, Unlockd had been poised for an initial public offering that was expected to value it at $200 million, with a service that enabled commercial content to be served when an Android phone was unlocked, in exchange for rewards.

Mr Murdoch was one of a string of high-profile investors in Unlockd, which also included former Seven Group boss Peter Gammell, former Qantas chairwoman Margaret Jackson, and Catch of the Day founders Hezi and Gabby Leibovich.

The claim says that after having previously approved and encouraged Unlockd’s services, Google suddenly determined the app was in breach of its Android operating system terms of service, and expelled it from its platforms.

Mr Murdoch then sought to step in and reason with Mr Pichai, the documents say.

“Lachlan Murdoch ... in multiple communications, implored Google’s CEO to withdraw Google’s threats to terminate Unlockd,” the claim says.

“Sundar Pichai, responded, in essence, by saying that Google would do what it wants and take its chances in court. Mr Pichai was effectively saying that Google ... will grind Unlockd down in litigation.”

Fighting Google in court is indeed an expensive business, and Mr Berriman has since secured external investors to fund his litigation.

Bigger picture

Google is currently embroiled in a broader US Justice Department antitrust case, which is looking at its dominance in search through multi-billion dollar payments to Apple that make it the only default search option on Apple devices.

On Thursday, old emails from Mr Pichai showed him talking to colleagues about Google’s strategy having bad “optics”.

Unlockd similarly highlights Mr Pichai’s prior concerns about the importance of advertising on a phone’s lockscreen, via emails from 2013, when he remarked that Google wasn’t available until after a phone was unlocked.

“If we get placement on launcher, but Facebook and others are accessible from the lock screen, we’re not in good shape,” Mr Pichai wrote.

If Judge Gilliam sides with Google and declines to let the case go to trial, it will remove the possibility of further internal communication related to Unlockd being unearthed through discovery.

“After terminating Unlockd without legitimate business justification, Google has controlled and monitored the expansion of a competing digital advertising model of the type that Unlockd developed,” Unlockd’s claim says.

“Google has done that through its control and monitoring of Glance and its termination of Unlockd. Glance expanded in 2022 alone by 40 million active users to reach a level of 183 million users.

“Since Unlockd commenced this litigation, the rapid growth of Google-funded Glance, its continued expansion into the US market and valuation of over $2 billion demonstrate the attractiveness of various lines of business that Unlockd was pursuing.”