A jury ruled that Google had indeed violated antitrust laws to limit competition and extract fees from other developers, including Epic Games, on its Play mobile app store.
The case could completely change the ballgame on how thousands of businesses make money on Android, the world’s leading mobile operating system owned by Google.
After a deliberation of just over three hours, the federal jury, consisting of 9 members, fully sided with Epic Games on each of the 11 questions in a recent trial that represents the latest in a three-year legal entanglement.
According to the jury’s findings, Epic Games, developer of the popular battle royale/survival game Fortnite, proved that Google had illegally maintained a monopoly in the market of smartphone apps and engaged in anticompetitive practices that harmed the studio.
Google may soon be required to alter the rules of its Play Store, such that other companies can create their own individual marketplaces on Android and avoid cuts that are collected by in-app purchases.
In spite of the wait for Judge James Donato of the US District Court for the Northern District of California, will decide the remedies necessary to address Google’s conduct going into next year. Google has said it will appeal the verdict.
The search engine giant had lawyers and executives arguing that because of its competition with Apple’s App Store, which is more popular in the United States, it’s impossible for it to run a monopoly.
This case is nearly identical to the one Epic filed against Apple for the same reason. It’s all about weakening the power these massive companies have over the mobile app ecosystem.
In pursuit of the case against Google, originally filed in 2020, Epic attempted to keep more of the revenue it received from in-app purchases. What’s more, Epic tried to introduce its own app store to compete with Play on the Android operating system.
In addition to a battle against Epic Games, Google is claiming to be defending itself from another antitrust trial in DC, where the Department of Justice has accused the company of illegally maintaining a monopoly on search and advertising.
Currently, on the Play Store, app developers are charged by Google a 15% fee for end-user payments of app subscriptions and a 30% fee for purchases made within popular apps downloaded from the store. Google says 99% of the developers qualify for the 15% fee or less on in-app purchases.
During the trial, Epic’s lawyers claimed that some of Google’s internal chat messages that may have been relevant to the case were deleted, undercutting the credibility of the search company.
In an official company blog post, Epic Games stated that the verdict was a win for every app developer and consumer from around the world, proving that Google’s app store practices abuse their power to stifle competition, reduce innovation, and extract exorbitant fees.