Home » US business news » Google loses Epic Games antitrust lawsuit over Play Store

Google loses Epic Games antitrust lawsuit over Play Store

By Nithya Bose in US business news, posted December 12, 2023

Google has lost an antitrust case to videogame maker Epic Games over allegations it exploited its dominant position in the app store market.

Epic Games sued Google in 2020, accusing the tech giant of extracting excessive profits from app developers using its dominance.

After less than four hours of deliberation, the San Francisco jury reached a unanimous decision.

This legal blow adds to Google's existing antitrust challenges, including a significant trial focusing on its search engine dominance.

Epic's lawsuit is part of a broader campaign against fees charged by Google and Apple to mobile app developers.

After the verdict, Epic Games celebrated the outcome, claiming it as a global win for app developers and consumers.

The lawsuit targeted Google's app store practices, alleging illegal activities and the abuse of monopoly power.

Google will appeal

Google, however, expressed its intention to appeal the decision, emphasizing the openness and choice provided by Android and Google Play.

US District Judge James Donato will determine the remedies Epic will receive, with a reconvening scheduled for January.

In its original lawsuit, Epic sought changes to make Google's Android ecosystem more open and competitive, though specifics remain unclear.

Google's Play Store contributes a relatively small portion of revenue to parent company Alphabet.

However, the marketplace is integral to a service package licensed to Android device manufacturers, crucial in promoting Google's search engine.

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According to evidence, Google's app store reported around $12 billion in operating profits in 2021, with margins exceeding 70 percent.

Google faces a Justice Department lawsuit targeting its advertising technology business and a landmark trial focused on its dominant search engine.

Epic Games' case centered on Google's dominance in the market for apps on devices running Android, along with the fees imposed on developers using the Play Store.

The company lodged the suit when the game developer encouraged Fortnite players to make in-game purchases directly from Epic, bypassing Google's and Apple's systems.

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Both tech giants subsequently removed Fortnite from their app stores, leading to lawsuits from Epic against both companies.

The trial provided insights into Google's operations in the Android software ecosystem.

Epic attempted to demonstrate Google's use of agreements with companies like Samsung to stifle competing app stores on Android phones.

Google argued these agreements fostered competition with Apple and defended its payment policies as consistent with industry norms.

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