A federal jury ruled that Google had violated antitrust laws in its Play mobile app store, favoring Epic Games and other developers, in a case that could have far-reaching implications for the app store economy.
Epic Games, the maker of the popular Fortnite game, emerged victorious in the antitrust trial against Alphabet's Google Play app marketplace, as per The New York Times.
Epic Games Wins Against Google's App Store Monopoly
Epic's Chief Executive, Tim Sweeney, took to social media to announce the triumph, stating, "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." The jury's decision, as revealed in a court filing, favored Epic on all counts, setting the stage for discussions on potential remedies starting next year.
The core allegations in Epic's lawsuit against Google centered around claims that the tech giant engaged in anticompetitive behavior by suppressing competition and imposing exorbitant fees of up to 30% on app developers. Epic argued that Google illegally tied its Play store and billing service, compelling developers to use both for inclusion in the store.
The ruling is a substantial setback for Google, which operates one of the largest app stores globally. If the decision holds, it could potentially reshape the dynamics of the app store economy, granting developers more control over the distribution and profitability of their apps.
Google, however, has indicated its intention to appeal the decision. Wilson White, Vice President of Government Affairs and Public Policy at Google, stated, "We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem," according to The Guardian.
Epic vs. Google in App Store Battle
Throughout the month-long trial, lawyers for both Epic and Google presented their final arguments on Monday morning. Epic accused Google of systematically blocking alternative app stores on the Play Store, while Google defended its practices, asserting that it competes intensely with Apple's App Store on price, quality, and security.
Jonathan Kravis, a lawyer for Google, emphasized that the company did not want to lose Android users to Apple and argued that Google had adjusted its fee structure to compete with its rival. He stated, "This is not the behavior of a monopolist."
This case marks an important legal battle in the ongoing scrutiny of major tech companies and their market practices. Google had previously settled related claims with dating app maker Match before the trial commenced, and similar antitrust claims by US states and consumers were resolved under undisclosed terms.
Epic Games had lodged a parallel antitrust case against Apple in 2020, but a US judge largely ruled in favor of Apple in September 2021. Despite this setback, Epic has appealed to the US Supreme Court to revive key claims in the Apple case, while Apple contests a ruling requiring changes to its App Store rules. The outcome of these cases could continue to shape the regulatory landscape for app marketplaces and the broader technology industry, Rauters reported.
