Epic Games Launches Antitrust Case Against Google Over Google Play Store
The antitrust case against Google, filed by Epic Games, began its trial in San Francisco on Monday. Epic alleges that Google has violated federal antimonopoly laws by compelling app developers to funnel customer payments through Google.
Epic Games, the renowned developer of the popular video game Fortnite, is once again taking on tech giants in a legal battle. After failing to convince the court that the Apple App Store was an illegal monopoly earlier this year, the company is now pursuing a similar lawsuit against Google and its Google Play Store.
The antitrust case against Google, filed by Epic Games, began its trial in San Francisco on Monday. At its core, Epic alleges that Google has violated federal antimonopoly laws by compelling app developers to funnel customer payments through Google, which allows the tech giant to take a cut of the revenue. Much like the lawsuit against Apple, this legal battle revolves around the issue of revenue sharing within the app stores.
If Epic Games prevails in this lawsuit, it could lead to more favorable terms for Android app developers who would no longer be forced to adhere to Google's payment system. However, the outcome of this case is far from certain, as Epic Games now finds itself pursuing the litigation alone. Other plaintiffs, such as Match Group, the owner of popular dating apps Tinder and Hinge, have dropped out after reaching agreements with Google that allowed their users to make in-app purchases through alternative payment channels. Additionally, a group of 52 state attorneys general reached a settlement with Google in a parallel antitrust case in September.
Epic Games' CEO, Tim Sweeney, made it clear that they remain determined to challenge Google's practices. He posted on X, formerly Twitter, stating, “Epic will go to trial against Google alone. We reject Google’s so-called 'user choice billing', in which Google controls, surveils, and taxes transactions between users and developers."
Google, on the other hand, vehemently denies the allegations made by Epic Games. They argue that the Google Play Store faces competition from the Apple App Store, which negates the claim of it being a monopoly. Google also contends that taking a portion of revenue from apps distributed through the Google Play Store is a legitimate business practice.
Wilson White, Vice President of Government Affairs and Public Policy for Google, stated, “Epic simply wants all the benefits of Android in Google Play without having to pay for any of them." Google had traditionally charged a 30 percent commission on app purchases through Google Play. However, in 2021, they reduced this fee to 15 percent for the first $1 million in annual revenue for app developers.
The trial between Epic Games and Google is expected to shed light on the legal intricacies surrounding app stores and their revenue-sharing models. The outcome could have significant implications not only for Epic Games but also for the wider community of Android app developers. As the legal battle unfolds, the tech industry and legal experts will be closely monitoring the proceedings in San Francisco.