Antitrust Case Ruling
Google recently lost an antitrust case against Epic Games, the owner of popular game Fortnite. As a result, a judge will now determine the necessary actions for Google to eliminate its monopoly. However, Tim Sweeney, the CEO of Epic Games, has expressed concerns that Google may continue its business practices unaffected.
The Lawsuit and Google's Fees
Epic Games filed a lawsuit against Google in 2020 after the tech giant removed Fortnite from the Google Play Store. Epic Games chose to charge users directly for in-game app purchases to avoid paying the 15 to 30% commission that Google collects. In response, Google mandated that all apps on the Play Store must pay these fees. This decision was made after companies like Spotify and Netflix attempted to circumvent the fees, as reported by The New York Times.
Preventing Access to Competing App Stores
Epic Games accused Google of using various tactics to prevent Android users from accessing competing app stores. While it was technically possible to bypass the Play Store, Epic Games argued that it was too challenging for the average consumer. Additionally, Epic Games claimed that Google paid developers substantial amounts of money to keep their games exclusively on the Play Store, discouraging competition.
Judicial Decision and Potential Remedies
A jury recently ruled in favor of Epic Games, and a federal court in San Francisco will determine in January how Google must change its business practices. The court's decision could result in significant financial consequences for Google. According to experts interviewed by Yahoo Finance, one potential remedy the judge may impose is requiring the Play Store to offer alternative payment options alongside Google Play billing.
Concerns Over Continued High Fees
In an interview with the Financial Times, Tim Sweeney expressed concerns about Google's future actions. He feared that Google might allow different payment systems on Android, but charge developers using alternate systems high fees to access the Play Store. This could potentially push developers back to relying solely on Google's payment processing system. The judge overseeing the case has already indicated that he will not intervene in Google's ability to set its own fees for developers, as reported by Yahoo Finance.
Epic Games' Response and Google's Disagreement
Following the ruling, Epic Games celebrated the victory and claimed that it demonstrated the illegality of Google's app store practices. Epic Games accused Google of using its monopoly position to impose excessive fees, stifle competition, and hinder innovation. However, Google disagreed with the verdict and stated that it plans to appeal. Wilson White, Google's VP of Government Affairs & Public Policy, emphasized that Android and Google Play provide more choice and openness compared to other major mobile platforms.
As of now, Google has not responded to requests for comment from Business Insider outside regular business hours.
Source: Business Insider
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By: hgetahun@insider.com (Hannah Getahun)
Title: Epic Games CEO Expresses Concerns About Google’s Control Over Play Store Competitors
Sourced From: www.businessinsider.com/epic-games-ceo-tim-sweeney-fortnite-google-antitrust-monopoly-2023-12
Published Date: Sun, 17 Dec 2023 06:34:28 +0000
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