American video game and software developer Epic Games, maker of the hit game Fortnite, has won big in its battle against Google in a major antitrust trial, which challenged the tech giant’s ‘illegal monopoly’ in Play Store, alleging that Google is quashing competitors and charging exorbitant fees for app developers. The nine-member jury ruled in favour of Epic on all counts.
In its lawsuit, Epic alleged that in 2021 Google made an operating profit of $12 billion on its Play Store by abusing its dominance in the app store market. Epic also alleged that Google used to bundle its Play Store and billing service, forcing developers to use both. Google charges a commission fee of up to 30% on in-app purchases on platform and also charges service fee for digital goods sale.
The jury also noted that Google “willfully acquired or maintained monopoly power by engaging in anticompetitive conduct”. The court will begin work in January on what remedies to implement. This could determine how Google needs to make changes in its operations addressing anti-competitive behaviour. Epic did not ask for monetary damages.
Commenting on the development, Epic CEO Tim Sweeney in a post on X claimed victory over Google. “After 4 weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts. The court’s work on remedies will start in January. Thanks for everyone’s support and faith! Free Fortnite!” Google said it would appeal.
“We will continue to defend the Android business model,” a company official said in a statement. The verdict will have major ramifications for Google’s app market revenue model and could impact Apple, too. The ruling could also give a level-playing field for app developers. “This is a major victory in the fight against one of Google’s most profitable monopolies,” said American Economic Liberties Project, an anti-monopoly body. Katherine Van Dyck, senior legal counsel at American Economic Liberties Project, said:
“A jury of 9 has found that Google’s sweetheart deals, bribes and monopoly profits are illegal. Epic’s decision to forego monetary damages and instead pursue injunctive relief all but ensures that this decision will fundamentally reshape Google’s monopoly, which it has leveraged to exploit app developers and stifle innovation. This is a message that justice can prevail in the fight against Big Tech’s outsized power over our lives,” she added. Epic has earlier lost an antitrust lawsuit against Apple’s dominance over its misuse of dominance and monopoly in its App Store. Its appeal is currently pending in the US Supreme Court.