Epic Games, the maker of the popular game Fortnite, has won a major victory in its antitrust lawsuit against Google, which accused the tech giant of abusing its dominance over the Android App store. The lawsuit was filed back in 2020. The verdict comes after a similar antitrust trial between Epic Games and Apple, which operates the rival iPhone App Store, in 2021. In that case, the decision was ruled in Apple’s favour.
A federal jury in California ruled on Monday that Google violated the Sherman Antitrust Act, the Cartwright Act and California’s Unfair Competition Law by imposing anticompetitive barriers that harmed consumers and developers. The jury found that Google’s policies of requiring app developers to use its own billing system and pay a 15% to 30% commission on in-app purchases, as well as preventing them from distributing their apps through alternative channels, created an illegal monopoly that hindered innovation and choice.
Epic Games, which aimed to enable direct billing and unrestricted installation of its store on Android devices, hailed the lawsuit verdict against Google as a win for consumers and developers. “Victory over Google! After four weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts. The Court’s work on remedies will start in January”, said Tim Sweeney, CEO of Epic Games, in a post on X.
“Over the course of the trial, we saw evidence that Google was willing to pay billions of dollars to stifle alternative app stores by paying developers to abandon their own store efforts and direct distribution plans and offering highly lucrative agreements with device manufacturers in exchange for excluding competing app stores”, said Epic Games in a blog post. “These deals were meant to cement Google’s dominance as the only app store in town – and it worked. More than 95% of apps are distributed through the Play Store on Android”.
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Google, on the other hand, plans to challenge the verdict and file an appeal. “We plan to challenge the verdict. Android and Google Play provide more choice and openness than any other major mobile platform. The trial made clear that we compete fiercely with Apple and its App Store and app stores on Android devices and gaming consoles. We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem”, said Google Affairs and Public Policy VP Wilson White.
The verdict, if remains unchanged, could have various implications for the app store economy in the long run. It could force Google to change its policies and allow more flexibility and freedom for app developers and users on Android, the world’s most widely used mobile operating system.
A similar antitrust trial between Epic Games and Apple also took place in 2021. In that case, Epic Games lost on nine out of 10 counts but won one concession around emailing customers, which is pending appeal.