Google Loses Landmark Antitrust Case: Epic Games Prevails in Lawsuit

Jury Finds Google Guilty of Monopoly Practices in Google Play Store

In a groundbreaking antitrust case, Google has been found guilty by a jury of holding a monopoly in its Google Play Store for Android operating systems. The jury sided with Epic Games, the developer of popular game Fortnite, and determined that Google's practices limited the reach of competitors' apps and charged high fees for in-app purchases.

Deliberation and Verdict

The jury deliberated for less than four hours before unanimously affirming Epic Games' argument in all 11 separate questions presented to them. This verdict solidifies the finding that Google acted anticompetitively in every aspect examined during the trial.

Epic Games' Lawsuit and Allegations

Epic Games filed the lawsuit after Fortnite was banned from the Play Store. The ban came after Epic Games allowed users to make in-game purchases directly from the game developer, bypassing Google's 15 to 30% fees on in-app transactions. Epic Games claims that Google's app store practices are illegal, exploiting its monopoly to extract exorbitant fees, hinder competition, and impede innovation.

Epic Games stated, "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."

The statement further highlights evidence presented during the trial that suggests Google paid billions of dollars to discourage alternative app stores, paid developers to abandon their own stores, and struck lucrative agreements with device manufacturers to exclude competing app stores.

Potential Impact on the Play Store

Depending on the judge's ruling regarding the violations, the verdict may require significant changes to the operations of the Play Store. Reuters reports that the Play Store generates billions of dollars in revenue for Google annually. Therefore, the outcome of this case could have far-reaching consequences for the company.

Comparison to Apple's Lawsuit

Epic Games also filed a similar lawsuit against Apple for its App Store practices in 2021. However, that lawsuit did not yield a favorable outcome for Epic Games.

Wilson White, Google's VP of Government Affairs & Public Policy, expressed the company's intention to challenge the verdict. He stated, "We plan to challenge the verdict. Android and Google Play provide more choice and openness than any other major mobile platform. The trial made clear that we compete fiercely with Apple and its App Store, as well as app stores on Android devices and gaming consoles. We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem."

As the legal battle continues, the outcome of this case may significantly impact the future of the Play Store and the app marketplace as a whole.

Read the original article on Business Insider.

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By: ktangalakislippert@businessinsider.com (Katherine Tangalakis-Lippert)
Title: Google Loses Landmark Antitrust Case: Epic Games Prevails in Lawsuit
Sourced From: www.businessinsider.com/google-loses-app-store-antitrust-suit-against-fortnite-creators-2023-12
Published Date: Tue, 12 Dec 2023 02:58:53 +0000