Epic Games has secured a significant victory in its legal battle against Google, alleging that the tech giant operated an unlawful monopoly in its Google Play app store and billing services. Following a brief jury deliberation, it was unanimously determined that Google possessed monopoly power in both the Android app distribution and in-app billing markets. The jury found Google's actions in these markets to be anticompetitive and that Epic had suffered harm as a result. Additionally, Google's connection between the Google Play app store and its Google Play Billing service was deemed illegal. The distribution agreements and Project Hug deals with game developers and OEMs were also considered anticompetitive.
In response to the verdict, Google's Vice President of Government Affairs & Public Policy, Wilson White, stated the company's intention to appeal. He emphasized that Google competes vigorously with Apple and other app stores on Android devices and gaming consoles, as highlighted during the trial.
Epic Games Google Lawsuit: Fighting Google's Monopoly over its App Store
Epic Games hailed the verdict as a win for app developers and consumers worldwide, asserting that it exposed Google's illegal app store practices, which allegedly exploited its monopoly to impose high fees, stifle competition, and hinder innovation.
This legal victory holds historical significance, especially considering that Epic faced a less favorable outcome in a similar lawsuit against Apple two years earlier. The Epic v. Google case revolved around undisclosed revenue-sharing agreements between Google, smartphone manufacturers, and prominent game developers, revealing Google's attempts to suppress rival app stores, particularly Epic's. Unlike the Apple case, this verdict was decided by a jury.
The specific remedies and consequences of the verdict are yet to be determined by Judge James Donato. Epic's lawsuit did not seek monetary damages but rather aimed to secure the freedom for app developers to establish their own app stores and billing systems on Android. The judge will convene with both parties in January to discuss potential remedies.
Judge Donato has already indicated that he will not grant Epic's request for an anti-circumvention provision, emphasizing that such injunctions are not typically issued. He also expressed no intention to determine the percentage of fees Google should charge for its products.
In their response to the jury's decision, Epic Games issued a statement calling the verdict "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," reads the announcement. "The evidence presented in this case demonstrates the urgent need for legislation and regulations that address Apple and Google strangleholds over smartphones, including with promising legislation in progress right now with the Digital Markets, Competition, and Consumer Bill in the UK and the Digital Markets Act in the EU."
Wilson White, Google's VP of Government Affairs and Public Policy, also addressed the decision, saying that the company plans to appeal the verdict.
"We plan to challenge the verdict. Android and Google Play provide more choice and openness than any other major mobile platform," reads White's statement (via The Verge). "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."
While Epic did not pursue damages in its lawsuit, CEO Tim Sweeney suggested that the company stood to save substantial sums by avoiding Google's fees in the future.
You can read the full verdict here.
