Epic Games, the creator of the popular game Fortnite, has won a significant legal battle against Google in the US. The jury in the case found that Google had turned its Google Play app store and Google Play Billing service into an illegal monopoly.
The US jury agreed that Google has monopoly power in the Android app distribution and in-app billing services markets. They also found that Google’s actions in these markets were anti-competitive and had harmed Epic. They concluded that Google’s tie between its Google Play app store and its Google Play Billing payment services was illegal. They also found that Google’s distribution agreement, its deals with game developers (known as Project Hug), and its deals with Original Equipment Manufacturers (OEMs) were all anti-competitive.
Google’s VP of Government Affairs & Public Policy, Wilson White, stated that they plan to challenge the verdict. He defended Android and Google Play, stating that they provide more choice and openness than any other major mobile platform. He emphasised that Google competes fiercely with Apple and its App Store, as well as app stores on Android devices and gaming consoles. A report by The Verge cited White’s statement saying, “We plan to challenge the verdict. Android and Google Play provide more choice and openness than any other major mobile platform. The trial made clear that we compete fiercely with Apple and its App Store, as well as app stores on Android devices and gaming consoles. We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem.”
Epic Games celebrated the verdict as a victory for all app developers and consumers worldwide. They stated that the verdict proves that Google’s app store practices are illegal and that Google abuses its monopoly to charge high fees, stifle competition, and reduce innovation.
This victory is particularly significant because Epic had mostly lost its previous legal battle against Apple. Epic sued Google in 2020, claiming that the Google Play Store had an unlawful monopoly.
The case led to revelations about Google’s partnership with other major tech giants like Apple. Google had to share secret revenue deals between them and, smartphone makers, and big game developers. Epic claimed that these deals were designed to be suppressive for other app stores.
So far, Google has announced that it will appeal the verdict. However, the implications of the victory for Epic are still not clear. Both parties will meet with a US Judge the second week of January to discuss the potential remedies after the verdict. Epic has demanded that it wants the court to grant every app developer total freedom to introduce its own app stores and its own billing systems on Android.
