- Epic Games triumphs
- Google accused of monopoly
- App store impact
A jury in the United States has ruled in favor of the developer of the popular video game Fortnite against Google, finding the search behemoth to have engaged in an unauthorized monopoly.
Google was accused in a lawsuit filed by Epic Games in 2020 of unlawfully dominating the app store market over competitors.
Hundreds of millions of individuals install applications for handsets running Google’s Android operating system through the store.
Google declared that it would contest the result.
Nevertheless, Epic CEO Tim Sweeney expressed his approval of the verdict.
“A triumph over Google! The California jury found the Google Play monopoly liable on all counts following four weeks of detailed court testimony,” Mr. Sweeney wrote in a post on X, formerly Twitter.
He stated that in January, the court would begin deliberating on compensation.
Legal Victory for Epic Games Amidst Google’s Defense
On Monday, the attorneys for the two corporations presented their concluding arguments in a trial that had endured for over a month.
The jury reached a unanimous verdict in favor of Epic on every point.
Notwithstanding the legal setback, Google remains steadfast in its defense of its business model.
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“No other major mobile platform offers as many options and transparency as Android and Google Play,” said Wilson White, Google’s vice president of government affairs and public policy.
He added that the trial demonstrated our intense competition with Apple and its App Store and the app stores on Android devices and gaming consoles.
Our steadfast commitment to the Android business model, our consumers, partners, and the broader Android ecosystem will persist.
The case also challenged Google’s practice of tying its Play Store and billing service, which requires developers to utilize both to have their applications listed in the store and the 30% transaction fees the tech giant imposes on Android app developers.
As a result, the ruling may grant developers greater control over the distribution and monetization of their applications.
Google’s Defence and Potential Implications
Google asserts that its commissions are industry-competitive and offer additional benefits such as reach, transaction security, and malware protection.
However, Google could be compelled to permit additional app stores on Android-powered devices and forfeit revenue from in-app purchases if the ruling stands.
Epic has its app store on PC, selling its products and third-party games and applications.
It competes with Steam, one of the largest video game distribution platforms globally.
What is the size of the Google Play Store? The Google Play Store is a central global app marketplace directly competing with the Apple App Store.
Android is the operating system that powers approximately 70% of smartphones worldwide. Furthermore, Epic Games reports that the Play Store distributes over 95% of Android applications.
While the store generates less revenue for the technology conglomerate than its search division, Google gains access to billions of mobile phones and tablets via the platform.
Epic’s Allegations and Legal Battles
Epic claimed in the lawsuit that Google’s “web of secretive, anti-competitive agreements” “suppresses innovation and choice.”
Epic Games issued the following statement following the verdict:
“Throughout the trial, it became evident that Google was prepared to spend billions of dollars to stifle alternative app stores by paying developers to abandon their store efforts and direct distribution plans, and by offering extremely lucrative agreements with device manufacturers in exchange for excluding competing app stores.”
Google filed a countersuit against Epic for damages, alleging that the latter had breached the company’s developer agreement.
The tech behemoth has been the subject of several antitrust cases. Match settled comparable allegations against it before the commencement of the Epic trial.
Epic launched an antitrust action against Apple in 2020, and a US judge mostly sided with Apple in 2021.
The ruling was contested by Epic in 2022.
Epic Games stated: “The evidence presented in this case demonstrates the urgent need for legislation and regulations that address Apple and Google’s strangleholds over smartphones.”