Google loses antitrust trial to Fortnite maker Epic Games.

Image credit: Mitchell Unsplash
Image credit: Mitchell Unsplash

Epic Games, the creator of Fortnite, has emerged victorious in an antitrust trial against Alphabet’s Google Play app marketplace, as confirmed by Epic’s CEO on Monday, shortly after the federal jury deliberated on the case.

“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,” announced Tim Sweeney in a post on X, formerly known as Twitter. The jury ruled in favor of Epic on all counts, as indicated by a court filing. The court is set to commence deliberations in January to determine the appropriate remedies.

We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem,

Stated Wilson White, Vice President of Government Affairs and Public Policy at Google

In response, Google expressed its intention to appeal the decision. “We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem,” stated Wilson White, Vice President of Government Affairs and Public Policy at Google, in an emailed statement.

Lawyers representing both companies presented their final arguments on Monday morning, concluding a trial that spanned over a month in Epic Games’ lawsuit against Google. The lawsuit alleged that Google engaged in anti-competitive practices, stifling competitors and imposing high fees, reaching up to 30%, on app developers.

Central to Epic’s accusations was the claim that Google unlawfully linked its Play store and billing service, compelling developers to utilize both to have their apps featured in the store.

The ruling represents a significant setback for Google, a major player in the global app store arena. If the decision stands, it has the potential to disrupt the entire app store economy, potentially granting developers greater influence over the distribution and profitability of their apps.

[Today’s verdict] proves that Google’s app store practices are illegal and they abuse their monopoly to extract exorbitant fees, stifle competition and reduce innovation.

Epic Games

Epic Games released a statement on its website, asserting, “[Today’s verdict] proves that Google’s app store practices are illegal and they abuse their monopoly to extract exorbitant fees, stifle competition and reduce innovation.”

The federal judge handed the case to the jury just hours before, emphasizing that a unanimous decision was required.

Gary Bornstein, an attorney for Epic, highlighted during the trial that the case had illuminated Google’s actions that impede competition. He argued that Google “systematically blocks” alternative app stores on the Play Store.

Google has vehemently denied any wrongdoing, contending that it engages in robust competition based on “price, quality, and security” in comparison to Apple’s App Store.

Jonathan Kravis, an attorney representing Google, asserted before jurors, “Google does not want to lose 60 million Android users to Apple every year.” He emphasized that Google has adjusted its fee structure to rival Apple, characterizing these actions as inconsistent with monopolistic behavior.

Notably, Google had previously settled associated claims with the dating app maker Match before the trial’s commencement. Additionally, the tech giant resolved antitrust claims by U.S. states and consumers, the terms of which remain undisclosed.

Epic Games had initiated a similar antitrust case against Apple in 2020, but a U.S. judge largely sided with Apple in September 2021. Epic is currently seeking to revive key claims in the Apple case through an appeal to the U.S. Supreme Court. Simultaneously, Apple is contesting a ruling favoring Epic that would necessitate modifications to App Store rules.

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