December 24, 2024

Epic Games triumphs over Google in antitrust lawsuit battle

2 min read

Google announces plans to challenge lawsuit alleging anti-competitive actions and unjust fees

Epic Games, the creator of Fortnite, has won an antitrust trial against Google’s Play app store. Epic’s CEO, Tim Sweeney, announced the victory on X (formerly Twitter), stating, “After four weeks of court testimony, the California jury ruled against the Google Play monopoly on all counts. The court will begin addressing remedies in January.

Jurors ruled in favor of Epic on all counts, according to a court filing. The court is set to commence the process of determining remedies in January.

Google, in response, expressed its intention to appeal. Wilson White, Google’s Vice President of Government Affairs and Public Policy, stated in an email, “We will persist in defending the Android business model and remain strongly dedicated to our users, partners, and the broader Android ecosystem.

Attorneys representing both companies presented their final arguments on Monday morning, concluding over a month of trial in Epic’s lawsuit against Google. The lawsuit accused Google of suppressing competition and imposing disproportionately high fees, reaching up to 30% for app developers.

Among the claims was that Google illicitly bundled its Play store and billing service, obligating developers to use both for app inclusion. The verdict represents a significant setback for Google, a major player in the global app store industry. If upheld, the ruling has the potential to disrupt the entire app store ecosystem, potentially empowering developers in determining app distribution and profitability.

Epic Games asserted on its website that the verdict demonstrates the illegality of Google’s app store practices and its misuse of monopoly power to impose excessive fees, hinder competition, and inhibit innovation.

Less than four hours before, the federal judge had entrusted the case to the jury, emphasizing the necessity of a unanimous decision.

During the day, Gary Bornstein, an attorney for Epic, highlighted the trial’s revelation of Google’s actions that impede competition. He argued that Google systematically obstructs alternative app stores on the Play store.

Google has refuted allegations of misconduct, contending that it vigorously competes with Apple’s App Store in terms of price, quality, and security.

Addressing jurors, Google’s lawyer, Jonathan Kravis, stated, “Google does not want to lose 60 million Android users to Apple every year.” Kravis pointed out that Google adjusted its fee structure to compete directly with Apple, emphasizing that such actions are inconsistent with monopolistic behavior.

Google resolved associated allegations from the dating app creator Match prior to the trial’s commencement. The technology behemoth also reached settlements on connected antitrust claims filed by U.S. states and consumers, the details of which remain undisclosed.

In 2020, Epic filed a comparable antitrust lawsuit against Apple, but a U.S. judge predominantly favored Apple in September 2021. Epic has petitioned the U.S. Supreme Court to revive crucial claims in the Apple case, while Apple is contesting a portion of a ruling favoring Epic that mandates alterations to App Store regulations.

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