Epic Games, company creator of the popular game Fortnite, got a significant legal victory against Google. A court in California has decided unanimously in favor of Epic Games in its antitrust lawsuit against Google, declaring that the tech giant holds a monopoly both in the application distribution market on Android and in-app payment services.
"Victory against Google!” the founder of Epic Games wrote on X, Tim Sweeney. “After four weeks of detailed testimony – said the 53-year-old American computer scientist – the jurors ruled against Google Play's monopoly on all fronts. The court's work on retaliatory measures will begin in January. Thank you all for your support! Free Fortnite!” added Sweeney.
The battle of Epic Games: three years of struggle
The dispute between Epic Games and Google has roots that date back to three years ago, when the video game company began to denounce digital stores (including Apple), claiming that they abuse their monopoly in the distribution of applications, imposing exorbitant fees on developers.
La lawsuit has been initiated when Google has removed Fortnite from Google Play in response to Epic Games, which allowed users to download extra content directly from its site, avoiding Google commissions. The dispute has expanded to challenge Google's monopolistic practices in the App Store, as well as commissions, accusing the company of make it difficult for developers to avoid Google Play to sell extra content and use essential Google services for apps.
After the removal of Fortnite from the Play Store, Google would persuaded Activision Blizzard with a payment of about $360 million to give up its plans for a competing app store. Furthermore, Google has reportedly entered into similar agreements with Nintendo, Ubisoft and Riot Games.
“Throughout the trial we saw evidence of how Google is willing to pay billions of dollars to stifle alternative app stores, paying developers to abandon their own store creation and direct distribution plans, while also offering highly lucrative deals with manufacturers of devices in exchange for the exclusion of competing app stores” explained Epic Games.
Google guilty of all charges
The jurors of the San Francisco court thus found Google guilty on all counts 11 charges against Google, thus confirming the company's monopoly in the distribution of applications on Android. They judged Google's actions to be anticompetitive, acknowledging that Epic Games suffered harm as a result of such practices.
Furthermore, they declared the connection between the Google Play Store and the Google Play Billing payment service as illegal.
“Today's verdict is one victory for all developers of apps and consumers around the world. It demonstrates that Google's practices in the mobile app market are illegal and that Google is abusing its monopoly to impose exorbitant fees, stifle competition, and reduce innovation,” Epic Games said in a statement.
La final sentence on which corrective measures Google will have to take to comply with antitrust rules will be issued in January by Judge James Donato but the decision could be subject to a possible rollover on appeal. Epic Games has requested full freedom for developers to distribute their apps on Android devices.
The Mountain View company announces appeal
Google has announced its intention to appeal to the decision, arguing that Android and Google Play offer more choice and openness than other mobile platforms.
“We intend to contest the verdict,” he replied Wilson White, vice president of Google, in a statement sent to the press. “Android and Google Play offer more choices and openness than any other major mobile platform. The trial made it clear that we are in strong competition with Apple and its App Store, as well as app stores on Android devices and gaming consoles,” White continued.
"We will continue to defend the Android business model and we remain deeply committed to our users, our partners, and the Android ecosystem overall,” White said.
Currently, the developers who use the Google Play Store to distribute their apps on Android devices are subject to a fee 30% commission on all in-app payments. Although Google claims to have an open system that allows the side loading, i.e. the download of applications from external sources, the recent decision has highlighted the influence of the secret agreements that Google seems to establish with smartphone manufacturers and large developers, to the detriment of smaller developers and Epic Games.
With Apple the result was different
Unlike the case against Google, the Epic Games lawsuit against Apple had a different result and was a substantial “draw".
The Fortnite company also filed a similar lawsuit against the Apple company, but in 2021 the judge in charge of the case ruled rejected charges of monopoly.
Epic also filed a lawsuit against Apple, again for the same reasons, but in 2021 the judge in charge of the proceedings rejected the monopoly accusations against it.
The verdict was that there could be no question of a monopoly by Apple, however imposing Tim Cook's company to change the rules of your Store and to allow developers to direct their users to third-party payment systems. Epic Games was asked instead reimbursement of all commissions don't pay.
The Google/Apple duopoly is now at risk
Epic Games' victory against Google represents a turning point in California courts and could lead to a significant change in the app store ecosystem.
The sentence represents one significant threat to the Play Store/App Store duopoly, which generates nearly $200 billion annually. If the decision is confirmed, it could lead to structural changes in app store business models, challenging how billions of consumers use their mobile devices.
The verdict could also affect the legislative initiatives, as the Digital Markets Act of the European Union, which imposes greater openings to alternative app stores and third-party payment systems.
