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A US jury ruled against Google in a landmark antitrust case brought by Epic Games. A major win for the Fortnite maker, the decision could pose a major threat to Apple and essentially the duopoly held by Google and the iPhone maker in the app store industry.
Google used unfair practices
The jury unanimously found that Google engaged in anti-competitive conduct, harmed EpicGames, and illegally forced its billing system on developers.According to Google’s Play Store rules, with any transaction on the app store, the company will take up to 30% cut. Similar is the case with Apple. Both of these companies generate close to $200 billion annually, a report by Bloomberg said.
Epic CEO sees end of 30% fees
Epic Games CEO Tim Sweeney hailed the verdict as a turning point for the app store industry. “The dominoes are going to start falling here. The end of 30% is in sight,” Sweeney said in an interview after the verdict, hinting that Google’s rival Apple will also be forced to adjust its practices.
“When you remove a 30% tax from an ecosystem, consumer prices will get better. Or quality will get better and selection will increase,” he said.
Epic vs Apple
The lawsuit stemmed from Epic’s 2020 decision to implement its payment system in Fortnite, bypassing the 30% commission fees charged by Apple and Google. As a result, Fortnite was removed from both app stores, leading to legal action from Epic.
The company then battled it out with Apple in 2021 and Apple won the case but that ruling was made by a single judge. The Google’s suit, where a jury sided unanimously with Epic, may provide the Epic Games an opportunity to weigh in on its options.
Google drew criticism for making side deals with big developers like Spotify where it offers lower commissions, and Samsung for making its Play Store, among other apps default on its devices powered by Android.
Google used unfair practices
The jury unanimously found that Google engaged in anti-competitive conduct, harmed EpicGames, and illegally forced its billing system on developers.According to Google’s Play Store rules, with any transaction on the app store, the company will take up to 30% cut. Similar is the case with Apple. Both of these companies generate close to $200 billion annually, a report by Bloomberg said.
Epic CEO sees end of 30% fees
Epic Games CEO Tim Sweeney hailed the verdict as a turning point for the app store industry. “The dominoes are going to start falling here. The end of 30% is in sight,” Sweeney said in an interview after the verdict, hinting that Google’s rival Apple will also be forced to adjust its practices.
“When you remove a 30% tax from an ecosystem, consumer prices will get better. Or quality will get better and selection will increase,” he said.
Epic vs Apple
The lawsuit stemmed from Epic’s 2020 decision to implement its payment system in Fortnite, bypassing the 30% commission fees charged by Apple and Google. As a result, Fortnite was removed from both app stores, leading to legal action from Epic.
The company then battled it out with Apple in 2021 and Apple won the case but that ruling was made by a single judge. The Google’s suit, where a jury sided unanimously with Epic, may provide the Epic Games an opportunity to weigh in on its options.
Google drew criticism for making side deals with big developers like Spotify where it offers lower commissions, and Samsung for making its Play Store, among other apps default on its devices powered by Android.
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