A California jury has ruled in favour of Epic Games, the creator of Fortnite, in a legal battle against Google, finding that the tech giant operated an illegal monopoly. The lawsuit, initiated by Epic Games in 2020, accused Google of unlawfully establishing dominance in its app store over competitors.
The case specifically challenged Google’s Android app store, utilised by hundreds of millions of people to install apps on smartphones powered by Android software. Google countered that Android and Google Play provide more choice and openness than other major mobile platforms, emphasising competition with Apple’s App Store and other app stores on Android devices and gaming consoles.
Wilson White, Vice President of Government Affairs and Public Policy at Google, stated, “We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem.” Google intends to challenge the outcome of the trial.
Epic Games’ CEO, Tim Sweeney, celebrated the verdict on X (formerly Twitter), declaring, “Victory over Google! After four weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts.” Sweeney mentioned that work on remedies would commence in January.
The case also addressed Google’s transaction fees of up to 30% imposed on Android app developers and the bundling of its Play Store and billing service, requiring developers to use both for app distribution. The ruling may grant developers more control over app distribution and revenue generation.
Google, while arguing that its commissions are competitive, could face implications such as allowing more app stores on Android devices and potential revenue losses from in-app purchases if the ruling stands.
Google Play Store is a major global app store, competing directly with Apple’s App Store. Android powers around 70% of smartphones globally, with over 95% of Android apps distributed through the Play Store. The ruling may have broader implications for the mobile app distribution landscape, influencing the relationship between tech giants and developers.
Epic Games had filed a similar antitrust case against Apple in 2020, but a US judge largely ruled in favour of Apple in 2021. The outcome of the Google case underscores the perceived need for legislation and regulations addressing the market dominance of tech companies in the smartphone ecosystem, according to Epic Games.
Kiki Garba
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