Google lost a court battle with the Fortnite game producer, Epic Games studio. The technology giant was found guilty of abusing its dominant position in the application market and accused of actions eliminating competitors and imposing high transaction fees, reaching up to 30%.
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Three years after the proceedings began, the jury of the Northern California district court decided in favor of Epic Games in the high-profile antitrust case against Google. The studio objected, among other things, to the high commissions imposed by the giant on mobile transactions.
The verdict unanimously emphasized that Google transformed its Google Play app store and Google Play Billing payment platform into an illegal monopoly and conducted anti-competitive practices, as a result of which the Epic Games studio suffered tangible losses.
“Today's verdict is a victory for all app creators and consumers worldwide. It proves that Google's practices in managing app stores are illegal, and the company abuses its monopoly to charge exorbitant fees, suppress competition, and limit innovation” - we read on the Epic Games blog.
The studio's CEO Tim Sweeney in an interview with The Verge also stressed that "the company will strive for real changes in the Google app store". However, he refused to provide details about the planned actions and steps he intends to take in the future.
Kacper Ponichtera
James Donato, a U.S. District Judge who presided over the trial in San Francisco, will now decide whether Google will have to allow alternative methods of payment and app distribution outside of its store. If the court's decision is upheld, it could significantly affect the distribution of apps and Google's revenue generation.
The company may be required to allow the acceptance of more app stores on Android devices, which could result in a loss of revenue from fees collected for in-app purchases.
However, Google has stated that despite the verdict being announced, it does not intend to accept the imposed conditions without a fight. The company has already announced that it will appeal the decision and defend its rights and business model.
"Epic wants you to give them a deal they don't have, and couldn't get anywhere else. A deal that would actually allow them to use the Play store for free" - argued Google's lawyer, Jonathan Kravis, in his closing speech.
Wilson White, Google's Vice President for Government Affairs and Public Policy, also emphasized in his statement that "Android and Google Play provide more opportunities and openness than any other major mobile platform".
- The process clearly showed that we compete fiercely with Apple and its App Store, as well as with app stores on Android devices and game consoles - he added.
Karina Orzechowska
The dispute between Google and Epic Games began three years ago, when Fortnite, introducing its own payment system, was removed from the Apple App Store and Google Play app stores. This happened after introducing a virtual payment method to the game - V-Bucks (V-Dollars).
Interestingly, a parallel process against Google was also taking place against Apple, but in this case the jury decided against Epic Games.
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