Epic Games has emerged victorious in the antitrust trial, alleging Google’s Play Store operated as an illegal monopoly.
The jury’s unanimous decision in favor of Epic Games has the potential to dramatically reshape the app store economy, Reuters news report said.
The trial culminated in jurors siding with Epic Games on all counts, affirming the allegations that Google engaged in anti-competitive practices, including stifling competition and imposing hefty fees of up to 30 percent on app developers. The court is set to commence discussions in January on the necessary remedies to address these issues.
This ruling stands as a significant setback for Google, which, alongside Apple, operates one of the largest app stores globally. If upheld, it could empower developers to have more control over app distribution and revenue generation.
However, Google has indicated its intention to appeal the decision, emphasizing its commitment to defending its Android business model and supporting the broader Android ecosystem.
Epic Games CEO Tim Sweeney celebrated the ruling on social media, condemning what he termed as “the Google Play monopoly.”
Central to Epic’s allegations was Google’s purported illegal bundling of its Play store with its billing service, mandating developers to utilize both for inclusion in the store.
While the Play store constitutes a smaller fraction of Google’s revenue compared to its lucrative search business, its significance lies in being the primary gateway to billions of mobile devices. Potential implications of this verdict might compel Google to permit additional app stores on Android devices, potentially reducing its revenue from in-app purchases.
Epic Games expressed satisfaction with the verdict, asserting that it highlighted Google’s unlawful app store practices that extract excessive fees, stifle competition, and hinder innovation.
The trial also unveiled startling claims, including accusations of Google deleting messages to conceal anti-competitive behavior. Epic’s attorney suggested that the content of these deleted messages would have been detrimental to Google’s case.
Google defended its actions, contending that it competes fiercely against Apple’s App Store in terms of price, quality, and security. It pointed out efforts to lower its fee structure to rival Apple’s practices.
This legal showdown follows Google’s settlements with dating app maker Match and other antitrust claims brought by U.S. states and consumers. Epic had previously pursued a similar antitrust case against Apple, which saw a ruling largely in favor of the tech giant.
Epic Games deliberately breached Play store rules by bypassing Google’s billing systems, enabling direct in-app purchases, leading to Google’s removal of “Fortnite” and subsequent legal action by Epic Games.
The ramifications of this ruling could significantly alter the dynamics of the app store landscape, prompting a reevaluation of policies and potentially allowing for increased competition and innovation within the digital marketplace.
