dailyO
News

How Epic Games won the antitrust battle, disrupting Google Play Store's monopoly

Advertisement
Sweta Gupta
Sweta GuptaDec 12, 2023 | 16:19

How Epic Games won the antitrust battle, disrupting Google Play Store's monopoly

After over a month of legal proceedings, the jury ruled unanimously in favor of Epic Games. (Photo Credits: Getty Images)

Epic Games, the company behind "Fortnite," has secured a significant legal victory in its trial against Google over antitrust allegations.

The trial accused Google's Play app store of operating as an unlawful monopoly, asserting that Google suppressed competitors and imposed excessive fees of up to 30% on app developers.

After more than a month of legal proceedings, the jury ruled in favor of Epic Games on all counts. If upheld, this decision could have profound implications for the entire app store industry.

Advertisement

The court is set to determine further actions in January.

Key events

  • The legal conflict originated in 2020 when Fortnite was removed from the Play Store and Apple's App Store for rule violations.
  • The lawsuit contested the control exerted by both companies over payment methods on their app stores and the 30 percent fee charged for in-app purchases.
  • Epic Games filed a lawsuit against Google, alleging unfair dominance in establishing its app store, which sidelined competitors.

Trial details

  • The trial between Epic Games and Google concluded on Monday after an extensive month-long legal process.
  • The jury unanimously sided with Epic Games on all counts, as documented in court records.
  • The legal battle scrutinized the substantial transaction fees of up to 30% that Google levies on Android app developers.
  • Attention was drawn to Google's link between its Play Store and billing service, mandating developers to use both for their apps to be available in the store.
  • The potential ramifications of the ruling could empower developers to exercise more control over app distribution and revenue generation.

Post-trial

  • Epic's CEO, Tim Sweeney, indicated that the process of finding solutions would commence in January.
  • Google contends that its commissions are competitive and underscores additional benefits such as broader reach, transaction security, and protection against malware.
Advertisement

However, if the verdict stands, Google might need to open up Android-powered devices to more app stores, potentially resulting in a loss of revenue from in-app purchases.

Accusations and claims

"Epic's lawyer, Gary Bornstein, highlighted what Google has done to impede competition," citing that Google systematically blocks alternative app stores on its Play Store.

Dramatic accusations surfaced, including Google allegedly deleting texts and internal messages to conceal anticompetitive actions. An Epic attorney suggested the deleted messages might have been unfavorable to Google.

Google refutes any wrongdoing, emphasizing its fierce competition with Apple's App Store based on price, quality, and security.

According to Google's lawyer, Jonathan Kravis, the company's fee structure was adjusted to compete with Apple, arguing that this behavior doesn't align with that of a monopolist.

On Monday, a lawyer for Epic Games stated that Epic intentionally violated Play Store rules by bypassing its billing systems, allowing customers to make in-app purchases directly with Epic.

Advertisement

This action led to Google banning "Fortnite," and subsequently, Epic filed a lawsuit.

Last updated: December 12, 2023 | 16:19
IN THIS STORY
    Please log in
    I agree with DailyO's privacy policy