In a landmark antitrust trial, Epic Games, the creator of Fortnite, has emerged victorious over Google, challenging the tech giant's Play app store's alleged illegal monopoly practices. The verdict, handed down by jurors who found in favour of Epic on all counts, may have far-reaching implications for the entire app store economy. The trial, spanning over a month, accused Google of stifling competition and imposing exorbitant fees of up to 30 per cent on app developers. The court, set to address remedies in January, could potentially reshape the app distribution landscape.
This outcome dealt a significant blow to Google, a tech giant that, alongside Apple, operates one of the world's largest app stores. If the decision stands, developers might gain increased influence over app distribution and revenue generation.
Expressing its intention to appeal, Google remains steadfast in defending its Android business model. Wilson White, Google's Vice President of Government Affairs and Public Policy, affirmed the commitment to users, partners, and the broader Android ecosystem.
Epic Games' CEO, Tim Sweeney, celebrated the ruling on social media, specifically highlighting "the Google Play monopoly." The trial spotlighted Epic's claims that Google unlawfully tied its Play store and billing service, compelling developers to use both for app inclusion.
The potential ramifications extend beyond Google's revenue streams, impacting its control over the central gateway to billions of mobile devices. The ruling may compel Google to permit additional app stores on Android devices, potentially reducing revenue from in-app purchases.
Epic asserted, "Today's verdict proves that Google's app store practices are illegal and they abuse their monopoly to extract exorbitant fees, stifle competition, and reduce innovation." Allegations included Google systematically blocking alternative app stores on the Play store.
The trial featured sensational claims, including accusations that Google deleted texts and internal messages to conceal anticompetitive behaviour. Epic's attorney suggested that the deleted content was relevant and unfavourable to Google, a claim the tech giant vehemently denies.
Google's defence centred on the intense competition with Apple's App Store, emphasising efforts to compete on price, quality, and security. The company lowered its fee structure to rival Apple, argued Jonathan Kravis, a lawyer for Google.
This case follows Google's settlements with dating app maker Match and undisclosed agreements with US states and consumers over related antitrust claims. Epic had previously filed a similar antitrust case against Apple in 2020, resulting in a ruling largely favouring Apple in September 2021.
Epic, not deterred by the Apple outcome, has sought to revive key claims through the U.S. Supreme Court. Meanwhile, Apple is contesting a ruling requiring changes to its App Store rules. The origin of Epic's legal battle with Google stems from the intentional violation of Play store rules, leading to the banning of "Fortnite" after circumventing billing systems for in-app purchases.