Epic Games CEO Tim Sweeney has pledged to proceed with the company’s antitrust lawsuit against Google, even as another major firm, Match Group, settled with the internet giant. Speaking on Twitter, Sweeney announced that Epic will go to trial against Google alone, citing their rejection of Google’s user choice billing. According to Sweeney, Google exerts control over transactions between users and developers, surveilling and taxing them. This declaration comes after Match Group dropped its high-profile antitrust lawsuit against Google’s app store, just days before the trial was set to begin. While Epic continues to fight Apple in a similar antitrust suit, the case against Google is now headed to the Supreme Court.
The settlement between Match Group and Google resolves allegations that the tech giant harmed competition through its app store terms. The agreement allows Match Group to offer users alternative methods of payment for in-app content without being required to use Google’s proprietary payment channels. This settlement demonstrates Google’s success in reducing the number of plaintiffs it will face in the upcoming trial, with 52 attorneys general dropping out following a separate, undisclosed settlement. As a result, Epic Games stands alone as Google’s remaining opponent in the high-profile trial that will examine the extent of control wielded by app store owners over developers.
Developers have voiced complaints about the high fees charged by app store owners, including Google, which have become a contentious issue in recent years. These lawsuits against Google and Apple, both filed by Epic Games in 2020, carry significant implications for app developers and the flow of billions of dollars in economic activity. The outcome of these app store cases will not only shape the future of app development but also impact the livelihoods of countless developers.
As part of the settlement, Google agreed to include Match Group’s apps in its user choice billing program, which offers lower in-app payment fees than those imposed by Google. Match will still support Google’s payment channels, subject to the standard fees of 15% for subscriptions and 30% for standalone purchases. However, the in-app payment fees linked to Match’s channels will be lower at 11% and 26%, respectively. Additionally, the $40 million held in escrow for the litigation will be returned to Match.
A Google spokesperson expressed satisfaction with the settlement, highlighting the company’s commitment to providing a secure and seamless app experience while investing in the Android ecosystem. Google aims to maintain its value delivery throughout an app’s lifecycle.
Overall, these ongoing lawsuits signify a crucial battle for control within the app store industry, with potential ramifications for developers and users alike. As Epic Games and Google head to trial, the outcome will not only shape the future of app stores but will also determine the distribution of economic power and influence within the digital marketplace.
