Antitrust Case: Google Loses Court Battle Against Epic Games

Business Edited by Updated: Dec 12, 2023, 12:01 pm
Antitrust Case: Google Loses Court Battle Against Epic Games

Antitrust Case: Google Loses Court Battle Against Epic Games

Tech giant Google has lost an antitrust case against videogame maker Epic Games over the market power of its app store. A US federal court jury found that Google wields illegal monopoly power through its Android app store.

Epic Games, the maker of Fortnite, filed the lawsuit against Google in 2020. In this lawsuit, the videogame maker alleges that Google used its dominance over the Android app distribution market to wring profit out of app developers. Google as well as Apple take percentages of all financial transactions at their app stores, and developers are mainly concerned about this matter. According to the Associated Press, the search engine giant collects a commission ranging from 15 percent to 30 percent on digital transactions completed within apps. The latest development is a huge blow for Google, as it operates one of the largest app stores.

The Associated Press reported that the unanimous verdict in the high-profile antitrust trial came after three hours of deliberation following a four-week trial. US District Judge James Donato will decide what measures Google needs to take to modify its payment and app distribution methods outside its own app store. Epic CEO Tim Sweeney also responded to the verdict. “Victory over Google! After 4 weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts. The Court’s work on remedies will start in January,” wrote Tim Sweeney on his X handle on December 12.

Meanwhile, Google is reportedly planning 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,” said Google’s VP of Government Affairs and Public Policy, Wilson White, to TechCrunch. At the same time, the latest verdict could potentially affect billions of dollars of revenue generated by Google’s Android app store.