November 22, 2024

‘Epic’ loss for Google, as jury sides with Fortnite maker in Play Store antitrust trial

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Google has lost the antitrust trial, as the jury sided with Fortnite-maker Epic Games, pronouncing that Google holds an illegal monopoly over app distribution on Android with Play Store.
Epic’s antitrust lawsuit alleged that Google was involved in practices to suppress competitors and charged app developers high fees of up to 30%. After a month-long trial, the jurors have found in favor of Epic on a total of 11 counts.
Jury finds Google’s Play Store monopolistic, anti competitive, and illegal
The jury unanimously concluded that Google possesses a monopoly in both the Android app distribution and in-app billing services markets. The jurors also found that Google engaged in anti-competitive behavior in these markets, which caused harm to Epic. They ruled that Google’s tie between its Google Play app store and its Google Play Billing payment services is illegal. And, the distribution agreement and Project Hug deals that Google made with game developers and manufacturers have also been deemed anticompetitive.
Epic celebrates, Google to appeal
Epic’s victory against Google is significant as they had previously lost their lawsuit against Apple. The case revealed secret revenue-sharing deals between Google, phone makers, and game developers, which were designed to suppress rival app stores. Also, this time the jury decided the case, unlike the previous Apple ruling.
The Fortnite-maker considers this verdict a win for all the app developers and consumers. “Today’s verdict is a win for all app developers and consumers around the world. It proves that Google’s app store practices are illegal, and they abuse their monopoly to extract exorbitant fees, stifle competition, and reduce innovation,” wrote Epic Games in a blog post.
Meanwhile, the jury’s ruling comes as a major setback for Google, which operates one of the world’s largest app stores. If the verdict is upheld, it could impact how developers can control the distribution of their apps and earn revenue from them, having consequences for the entire app store ecosystem.
Google has said that it plans to appeal against the decision. In a statement, Wilson White, the Vice President of Government Affairs and Public Policy at Google, said, “We plan to challenge the verdict. Android and Google Play provide more choice and openness than any other major mobile platform. The trial made clear that we compete fiercely with Apple and its App Store, as well as app stores on Android devices and gaming consoles. We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem.”
The court will begin working on potential solutions for the ongoing legal case involving Google in January. Judge James Donato, who is presiding over the case, will decide whether Google should be required to allow developers to create their own app stores and billing systems for Android devices.



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