November 29, 2024

Netflix: Explained: Epic vs Google antitrust case and why it is important

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Fortnite publisher Epic Games and Google will face-off in a federal court on November 6 in an antitrust trial similar to the Apple one. Epic has claimed that Google has abused its power in the Android apps market by charging fees to use its Google Play Store, forcing app developers to using its own payment system and stifling competition. Here’s all you need to know about the case.
What is the case?
In 2020, Epic Games filed a lawsuit against Google and Apple saying that the companies charge a fee, called “Google Tax” and “Apple Tax”, in exchange of letting developers use their app stores for making transactions.It also said that both companies do not let developer suse their own payments systems.
Epic has already had a legal battle with Apple but this will be first time Google will be dragged to court in this matter.
Why does Epic wants separate payment system?
Epic publishes Fortnite, a free-to-play game in which players use actual money to make in-app purchases such as V-Bucks (in-game currency). This is how Fortnite makes money. Now, the money is paid through Google’s systems and the company keeps up to 30% cut of that transaction.
Epic argued that this shouldn’t be the case and it should be allowed to offer a separate payment option to users so that Epic does not have to pay Google (or Apple). Soon, Epic announced it was bypassing Apple and Google’s app store fees. It established an alternate method violating the companies policies. Both Apple and Google banned the game from their app stores.
Apple’s legal battle
The lawsuit against Apple went to court in 2021 and the one against Google was delayed multiple times. A ruling in Apple’s case was mostly in favour of Apple.
Epic’s ‘partners’
Epic was, until recently, joined by Match Group – the parent company of Tinder. But recently, there was an out-of-counrt settlement, which means Epic is alone in this fight.
Why is the case important?
Google has been hit by similar case in multiple regions, including India. Google has long argued that the fees it charges is utilised in keeping the Android phones safe. By allowing third-party or sideloading apps on Android would dismantling basic protections and Android will lose the ability to compete with the iPhone.
To provide relief, Google has changed some rules in certain markets where its has lowered the fees under “User Choice Billing” program in launched in 2022.
Epic vs Google case witnesses
It is expected that Google CEO Sundar Pichai and Epic CEO Tim Sweeney will be called as witnesses in the case. Google says current Android (and Chrome, and Chrome OS) boss Hiroshi Lockheimer and representatives from Apple, Netflix, Motorola, and AT&T may also testify.



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