It’s been three years since Fornite-maker Epic Games sued Apple and Google for allegedly running illegal app store monopolies. And despite losing a similar battle against Apple, the game-maker has secured a win against Google. 🏆
The jury in Epic v. Google delivered its unanimous decision after just a few hours of deliberation. They found a few key things:
- Google has monopoly power in the Android app distribution markets and in-app billing service markets, and Google did anticompetitive things in those markets.
- Google has an illegal tie between its Google Play app store and Google Play Billing payment services.
- Google’s distribution agreement, Project Hug (which deals with game developers), and deals with OEMs are all anticompetitive.
Most importantly, it found that Epic was injured by the behaviors above.
Epic Games said in a company blog, “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.”
Google plans to challenge the verdict, saying that the trial made it clear that it competes fiercely with Apple’s App Store and app stores on Android devices and gaming consoles. 👎
However, it’s important to note that this victory is not quite sealed yet. Judge James Donato will decide the appropriate remedies, given that Epic never sued for monetary damages. Instead, it wants the court to tell Google that every app developer has total freedom to introduce its own app stores and billing systems on Android. 🧑⚖️
The judge has already said he will not decide what percentage fee Google should charge for its products, among other things. As a result, we’ll have to wait and see what happens when both parties meet the judge in January to hash out a remedy.
Google shares were down marginally on the news. But the broader implications of this trial are likely to be a major deal for Google, Apple, and other tech giants, as this battle represents just one part of a much larger conflict in the tech space. ⚔️