Fortnite maker Epic Games wins landmark US court fight with Google
SAN FRANCISCO – In a significant victory for Epic Games, the maker of popular video game Fortnite, a US court jury has ruled that Google wields illegal monopoly power through its Android app store. The jury found in favor of Epic Games on all counts, signaling that Google’s app store practices are indeed illegal and that the company abuses its monopoly position to extract exorbitant fees, stifle competition, and hinder innovation.
This verdict proves that Google’s app store practices are illegal and they abuse their monopoly to extract exorbitant fees, stifle competition, and reduce innovation, stated Epic Games on its website.
If the ruling stands, it could have far-reaching implications for the entire app store economy, potentially giving developers more control over how their apps are distributed and how they can profit from them.
Epic Games filed lawsuits against both Google and Apple in 2020, accusing the tech giants of exerting control over their respective app stores and charging excessively high fees, sometimes up to 30%, to app developers.
Among the allegations made by Epic Games was that Google unlawfully ties its Play store and billing service together, making it mandatory for developers to use both services to have their apps featured in the store.
This ruling is a major blow to Google, which operates one of the world’s largest app stores alongside Apple. Google has announced its intention to appeal the decision, which could potentially prolong the legal battle for months or even years.
While Google plans to fight the verdict, Mr. Wilson White, vice-president of government affairs and public policy at Google, stated, We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem.
During the trial, the jury swiftly concluded that Google had implemented various illegal strategies to maintain its app store monopoly on Android phones. Epic Games’ lawyer, Mr. Gary Bornstein, argued that the trial had exposed Google’s actions that impede competition and systematically block alternative app stores on the Play store.
Google, on the other hand, maintained its innocence and claimed that it competes intensely with Apple in terms of price, quality, and security. It argued that the drastic reduction of its fees was proof that it did not behave like a monopolist.
This landmark ruling comes after Google settled related claims from dating app maker Match before the trial began. The company has also settled related antitrust claims by US states and consumers, although the terms of those settlements have not been disclosed.
Epic Games also filed a similar antitrust case against Apple in 2020, but a US judge primarily ruled in Apple’s favor in September 2021. Epic Games has sought assistance from the US Supreme Court to revive key claims in their case against Apple, while Apple is fighting against a ruling that could compel changes to its App Store rules.
The battle between Epic Games, Google, and Apple highlights the growing scrutiny over the control and fees imposed by tech giants on their app stores. The outcome of these legal battles may shape the future of app distribution and revenue generation for developers.
