Epic Games has won its antitrust lawsuit against Google. A federal court jury found that Google’s Android app store, known as the Google Play Store, has been operating as an illegal monopoly, wielding anticompetitive tactics that have harmed both smartphone consumers and software developers.
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Epic Games initiated the legal battle in 2020, filing lawsuits against both Google and Apple. The lawsuits accused these tech giants of abusing their control over their respective app stores, imposing what developers deemed an unfair tax on financial transactions within the app shops.
Both Google and Apple take a percentage of all transactions conducted through their platforms, leading to discontent among developers.
The legal focus has been on the 30% commission that Google collects on digital transactions within apps through the Play Store, a similar fee structure employed by Apple in its App Store.
Epic Games contended that these practices stifled competition, innovation, and resulted in inflated costs for both developers and consumers.
The jury’s decision, reached after just three hours of deliberation following a four-week trial, is a blow to Google.
The verdict asserts that Google’s Play Store has been shielded by anticompetitive barriers, causing damage to consumers and developers alike.
The ruling also declares an illegal tie between the Play Store and Google’s in-app billing services. Epic Games celebrated the victory as a win for app developers and consumers globally.
The gaming company’s CEO, Tim Sweeney, expressed satisfaction with the jury’s findings, addressing the illegality of Google’s app store practices.
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Google announced its intention to appeal the decision, signaling that the legal battle might extend for months or even years.
The company defended its Android business model, asserting that Android and Google Play offer more choice and openness than other major mobile platforms.
Google’s Vice President for Government Affairs & Public Policy, Wilson White, said their fierce competition with Apple and other app stores on various devices.
If the decision withstands the appeals process, Google might face financial ramifications, particularly concerning the billions of dollars generated annually from Play Store commissions.
The court’s remedy phase, set to take place in January, will determine the steps Google must take to rectify the harm found by the jury.
Epic Games aims to leverage the court’s authority to compel Google to allow app developers complete freedom in implementing their own app stores and billing systems on Android.
This demand, if granted, could reshape the app distribution industry on Android devices, providing developers with more control and increased competition.
The verdict against Google’s Play Store monopoly could set a challenging app store practices across various platforms.
Developers may gain more flexibility and options, leading to a more competitive and innovative app ecosystem.
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Epic Games faced a less favorable outcome in a similar case against Apple. A U.S. judge ruled in favor of Apple, and Epic is appealing the decision at the U.S. Supreme Court.
Epic Games addressed the urgent need for regulations addressing the control by Apple and Google over smartphones.
The company cited promising legislative developments, such as the Digital Markets, Competition, and Consumer Bill in the UK and the Digital Markets Act in the EU.
With approximately 70% of the world’s smartphone market share, Android’s dominance amplifies the impact of the court’s decision on the tech industry.
During the trial, revelations emerged about Google’s aggressive tactics to maintain the exclusivity of the Google Play app store.
Testimonies indicated that Google worked actively to ensure that Play Store remained the sole conduit for payments to third-party apps, including popular games like Fortnite.
The trial showed Google’s revenue-sharing deals with smartphone makers, characterized by Epic’s lawyers as a bribe and block strategy.
Google, like Apple, has argued that its app store commissions are industry standard, providing benefits such as reach, transaction security, and malware detection.
However, the jury’s decision labeling Google’s actions as anticompetitive and harmful to both developers and consumers.
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