Google Loses Antitrust Suit to Epic Games

Epic Games, the company behind “Fortnite,” has won a significant legal battle against Alphabet’s Google in a landmark antitrust trial. The jury, according to court documents, sided with Epic on all charges. Epic had accused Google of operating an illegal monopoly through its Play app store, suppressing competition, and imposing excessive fees of up to 30% on app developers. The court is set to commence deliberations on potential remedies in January.

This decision represents a major setback for Google, which, along with Apple, runs one of the largest app stores globally. Should this verdict stand, it could fundamentally alter the dynamics of the app store market, granting developers greater control over app distribution and monetization.

Google has announced its intention to appeal the decision. Wilson White, Google’s vice president of government affairs and public policy, stated the company’s commitment to defending its Android business model and supporting its users and partners within the Android ecosystem.

Epic CEO Tim Sweeney expressed his satisfaction with the ruling on social media platform X, criticizing the monopoly of Google Play.

The legal teams for both companies delivered their closing arguments on Monday morning, and the case was handed to the jury shortly thereafter. The jury was instructed that their decision needed to be unanimous.

Epic’s lawsuit included claims that Google unlawfully binds its Play store with its billing service, forcing developers to use both for their apps to be included in the store.

Though Google’s Play store contributes less to its revenue compared to its highly lucrative search business, it holds symbolic significance as the primary gateway to billions of mobile devices.

The verdict might compel Google to permit more app stores on Android devices and potentially reduce its revenue from in-app purchase commissions.

Epic, in a statement on its website, declared the verdict as evidence of Google’s illegal practices in its app store, accusing the company of exploiting its monopoly to impose high fees, hinder competition, and limit innovation.

Gary Bornstein, a lawyer for Epic, highlighted in court how Google allegedly impedes competing app stores on its platform and accused Google of systematically erasing texts and internal messages to hide its anticompetitive actions. Jurors were told they could infer that the content of these deleted messages was relevant and likely unfavorable to Google.

Google refuted these allegations, arguing that it actively competes with Apple’s App Store in terms of pricing, quality, and security.

Jonathan Kravis, representing Google, emphasized to the jury that Google’s fee reductions were competitive responses, not indicative of monopolistic behavior.

Before the trial, Google had settled related claims with dating app maker Match and also resolved antitrust claims from U.S. states and consumers under undisclosed terms.

Epic previously filed a similar antitrust lawsuit against Apple in 2020, which largely resulted in a ruling in favor of Apple in September 2021. Epic has appealed to the U.S. Supreme Court to reinstate key claims in the Apple case.

The conflict with Google escalated when Epic circumvented Play store billing systems for in-app purchases, leading to the removal of “Fortnite” from the store and triggering the lawsuit.

Daily True News

Daily True News

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