Google loses to Epic Games. The company will pay a 700 million dollar fine.

Google has agreed to pay a fine of 700 million dollars as part of a settlement with Epic Games studio, the creator of the Fortnite game. The fine is to be paid mainly to Android system users. According to the arrangements, Google also has to facilitate downloading applications from outside the Google Play store.

Google loses to Epic Games. The company will pay a 700 million dollar fine.
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Summary

  • Google has agreed to pay $700 million to its customers over allegations of illegal monopolistic activities, in a settlement announced in a San Francisco federal court.
  • The dispute between Google and Epic Games, which began in 2020, centered on the removal of the Fortnite game from the Google store, monopolistic actions, and unjustified transaction fees in apps.
  • A Californian federal jury sided with Epic Games, confirming Google's violation of competition rules in the app sector.
  • As per the settlement, Google will fund $630 million for the customer settlement fund, with an additional $70 million going to all US states to cover court costs.
  • Each qualifying customer will receive at least $2 in compensation, with additional funds based on expenditures in the Google Play store between August 16, 2016, and September 30, 2023.
  • Google has also committed to changing its rules to make it easier to download apps directly from their creators and will not hinder transactions between creators and users using apps downloaded outside the Google Play store.
  • The $700 million settlement is a fraction of the estimated $10.5 billion penalty that Google could have faced if the case had not ended in a settlement.

Google versus Epic Games: end of the court battle

Google has committed to paying 700 million dollars to its customers in connection with allegations of illegal monopolistic activities. The agreement was announced in federal court in San Francisco in cooperation with fifty American states, the District of Columbia, Puerto Rico, and the Virgin Islands.

The conflict between Google and Epic Games regarding the exclusion of the Fortnite game from the Google store has been ongoing since 2020. The accusations against the giant concerned monopolistic actions involving the illegal restriction of app distribution on Android devices and the imposition of unjustified fees for transactions in apps.

The Californian federal jury agreed with Epic Games and confirmed Google's violation of competition rules in the area of applications. Lawyers of the states, who applied for settlements, argue that the terms of the agreement will bring significant and long-lasting relief to consumers across the country.

Epic Games wins in court against Google. "The company abused its monopoly"
Google lost the court battle with the producer of the Fortnite game, Epic Games studio. The tech giant was found guilty of abusing a dominant position in the app market and accused of actions eliminating competitors and imposing high transaction fees, reaching up to 30%.

Google agreed to a settlement

According to the terms of the agreement, Google will fund the settlement fund for customers with 630 million dollars. An additional 70 million dollars will go to all US states to cover court costs. Each qualifying customer will receive at least 2 dollars in compensation, and additional funds will be available based on expenditures in the Google Play store between August 16, 2016, and September 30, 2023. It is not yet certain whether refunds will also include users outside the US.

In addition, Google has committed to changing the rules, making it easier to download apps directly from their creators. The company will also not hinder transactions between creators and users using apps downloaded outside the Google Play store, provided both parties agree.

700 million dollars not so scary

The amount of 700 million dollars, although huge, is just a fraction of the sum that Google could have paid if the case had not ended in a settlement. It is estimated that the company could have been charged a penalty of up to 10.5 billion dollars.