Epic Games Wins Case Against GOOGLE
On December 11th, 2023, Google lost a major antitrust lawsuit filed by Epic Games, the makers of the popular video game Fortnite. The jury found that Google maintained a monopoly in the smartphone app store market and engaged in anticompetitive conduct that harmed Epic.
Here are the key points to understand the situation:
What was the court case about?
Epic Games sued Google in 2020, alleging that Google violated antitrust laws by:
Forcing developers to use Google Play Store’s payment system, charging a 30% commission.
Restricting developers from offering lower prices or promotions outside of the Play Store.
Making it difficult for developers to distribute their apps outside of the Play Store.
What did the jury find?
The jury agreed with Epic Games on all three counts. They found that Google’s conduct:
Harmed competition by limiting developer choices and consumer options.
Stifled innovation by making it harder for developers to compete with Google’s own apps.
Increased prices for consumers by giving Google too much control over the app market.
What are the potential consequences for Google?
The judge will now decide what remedies to impose on Google. This could include:
Forcing Google to change its practices in the Play Store, such as allowing alternative payment systems or making it easier for developers to distribute their apps outside of the Play Store.
Fines to punish Google for its anticompetitive conduct.
Divestiture of some of Google’s assets, such as the Play Store.
What does this mean for the future of app stores?
This ruling could have a significant impact on the app store ecosystem. It could lead to more competition and innovation in the app market, as well as lower prices for consumers. It could also set a precedent for future antitrust cases against Google and other tech giants.
However, it’s important to note that the appeals process could take years. Google has already announced its intention to appeal the verdict, and the legal battle could continue for some time.
Here are some additional resources you may find helpful:
The New York Times: https://www.nytimes.com/2023/12/11/technology/epic-games-google-antitrust-ruling.html
Reuters: https://www.reuters.com/legal/google-epic-games-face-off-app-antitrust-trial-nears-end-2023-12-11/
Barron’s: https://mobile.twitter.com/barronsonline/status/1734382686502830545
