'Fortnite' creator Epic Games wins antitrust lawsuit against Google
A United States (US) court jury has sided with Epic Games in its antitrust lawsuit against Google, wrapping up a three-year battle between the two companies. Fortnite maker Epic alleged that Google Play's practices violated federal and California state antitrust laws. The unanimous decision found that Google's Android app store was protected by anticompetitive barriers, negatively impacting smartphone users and software developers. This ruling could change how app marketplaces like Google Play operate.
Background of lawsuit
Epic Games sued Google in 2020, claiming the tech giant abused its power to shield its Google Play Store from competition, safeguarding a lucrative revenue source worth billions of dollars each year. Google takes a commission of 15% to 30% on digital transactions within apps, similar to Apple's App Store. Epic argued that both Google and Apple violate antitrust laws by forcing app users to pay through their systems and take a hefty sum of each in-app purchase.
Jury's decision and impact on Google
Apple won a similar case against Epic, but that decision is being appealed at the US Supreme Court. The jury in Google's case had a different perspective compared to Apple's, though Google allows Android apps to be downloaded from other stores. Depending on how the verdict is enforced, Google could lose billions in annual profit from its Play Store commissions. However, Google's primary revenue source—digital advertising tied to its search engine and other services—won't be directly impacted by the trial.
Google plans to appeal verdict
Epic CEO Tim Sweeney celebrated the verdict, posting on X, "Victory over Google!" In a company statement, Epic called the decision "a win for all app developers and consumers around the world." In contrast, Google plans to appeal the verdict. Wilson White, Google's vice president of government affairs and public policy, said, "Android and Google Play provide more choice and openness than any other major mobile platform."
Court's work on remedies will start in January: Sweeney
Future implications
This verdict isn't the end of Epic's fight against tech giants, as Google is expected to appeal soon. Additionally, another significant antitrust trial in Washington will be decided by a federal judge after hearing final arguments in May, further examining Google's relationship with Apple in online search. Meanwhile, Epic supports regulatory efforts like the UK's Digital Markets, Competition, and Consumer Bill and the European Union's Digital Markets Act, which could impose further restrictions on Apple and Google's dominant software practices.
