Google has lost a significant case against Epic Games, a video game developer, after a jury found that the company operates an illegal monopoly in the Android app store market. The verdict was announced at the end of a month-long trial, which is part of a longer-running legal dispute between the two parties that began in 2020.
The dispute arose when Epic Games, the maker of Fortnite, implemented its own in-app payment system to avoid giving Google a cut of its sales. In response, Google removed Fortnite from its Play Store, citing violations of its terms of service. Epic Games argued that Google’s actions were anticompetitive and aimed at maintaining its dominance in the app store market.
The jury’s decision is significant because it opens up new possibilities for app developers to distribute their apps and keep a larger share of the revenue. Up until now, app developers have had to adhere to Google’s rules and pay a 30% commission on in-app purchases. The verdict could lead to changes in how app stores operate, giving developers more control over how their apps are distributed and how they make money from them.
The evidence presented during the trial showed that Google was willing to pay billions of dollars to stifle competition and maintain its dominance. The company was accused of making deals with device manufacturers to exclude competing app stores and offering lucrative agreements to developers to abandon their own store efforts. This practice has resulted in over 95% of apps being distributed through the Play Store on Android devices.
Google’s Android App Store Dominance Draws Legal Fire
Epic Games hailed the verdict as a win for all app developers and consumers, stating that it proves that Google’s app store practices are illegal and that the company abuses its monopoly to extract exorbitant fees, stifle competition, and reduce innovation. Google, on the other hand, plans to challenge the verdict, arguing that its Android and Play Store services provide more choice and openness than any other major mobile platform.
The outcome of the trial is closely watched, as it could have significant implications for the entire app store sector. If Google is forced to change its Play Store rules, it could allow developers to point customers to competing app stores, allowing them to avoid paying a cut to Google for app purchases and in-app purchases without any repercussions. The judge in the case will announce measures that Google must take as a consequence of the verdict, which could lead to further changes in the way app stores operate.
The case is part of a broader battle between Epic Games and Apple, with both companies fighting antitrust lawsuits in separate courts. The outcome of these cases could have significant implications for the tech industry as a whole, as they challenge the dominance of the big tech companies and seek to level the playing field for smaller developers and competitors.
