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Technology

Technology

Epic Games wins antitrust case against Google over Play app store

Fortnite game installing on Android operating system is seen in this illustration taken, May 2, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
Fortnite game installing on Android operating system is seen in this illustration taken, May 2, 2021... Fortnite game installing on Android operating system is seen in this illustration taken, May 2, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
Fortnite game installing on Android operating system is seen in this illustration taken, May 2, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
Fortnite game installing on Android operating system is seen in this illustration taken, May 2, 2021... Fortnite game installing on Android operating system is seen in this illustration taken, May 2, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

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Epic Games, the company that developed “Fortnite,” has been successful in its high-profile antitrust suit against Alphabet’s Google (GOOGL.O), which contended that the Play app store functioned as an illegal monopoly. If upheld, the verdict can disrupt the app store economy completely.

More than a month of trial in Epic’s complaint, which accused Google of taking measures to eliminate rivals and charging unjustly high fees of up to thirty percent to app developers, has resulted in the jury finding for Epic on all counts, according to a court filing. Epic’s lawsuit accused Google of taking such action. Beginning in January, the court must determine which remedies to implement.

Because of this verdict, Google, which, together with Apple, owns one of the largest app stores in the world, has suffered a surprising and devastating loss. There is a possibility that the verdict will allow developers more control over how they are disseminated and how they are planning to file an appeal. Wilson White, the vice president of government relations and public policy at Google, emailed the message. “We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem,” White added.

On Monday, Epic CEO Tim Sweeney expressed his satisfaction with the decision regarding social media site X, referring to it as “the Google Play monopoly.”

On Monday morning, attorneys for both firms presented their concluding arguments. The federal court had handed the case over to the jury less than four hours prior, instructing them that a verdict required a unanimous vote.

Epic made several complaints, including that Google unlawfully connected its Play Store and billing service. This means developers were compelled to utilize both services to have their applications featured in the Play Store.

Even though the Play Store accounts for a far lower portion of Google’s earnings than the enormously wealthy search industry, it is of symbolic significance because it is the central gatekeeper for billions of mobile phones and tablets.

It is possible that Google could be forced to allow additional app stores on Android-powered devices, resulting in a loss of income due to the cut that Google receives from in-app purchases.

“Today’s verdict proves that Google’s app store practices are illegal, and they abuse their monopoly to extract exorbitant fees, stifle competition, and reduce innovation,” Epic stated on its official website.

It has been alleged that Google deleted messages. “The trial has shone a very bright light on what Google has done to impair the competition,” a lawyer representing Epic, Gary Bornstein, told jurors earlier in the day. He added that Google “systematically blocks” rival app shops on the firm’s official Play Store.

The claims that Google had a system for deleting texts and internal conversations to conceal its anticompetitive activities were among the more spectacular charges. On Monday, a counsel for Epic informed the jury that they may presume that the contents of the deleted communications were relevant to the case and “would have been unfavorable to Google.”

By asserting that it competes “intensely on price, quality, and security” with Apple’s App Store, Google has denied any wrongdoing and disclaimed any allegations of impropriety.

Jonathan Kravis, a lawyer for Google, claimed that “Google does not want to lose 60 million Android users to Apple every year.” Kravis stated that to compete with Apple, Google reduced its pricing structure.

“This is not the behavior of a monopolist,” remarked the politician. Before the beginning of the trial, Google reached a settlement with the dating app provider Match (MTCH.O.) for related claims. Additionally, the internet giant settled similar antitrust complaints brought by states and customers in the United States on confidential terms.

Epic filed a similar antitrust complaint against Apple (AAPL.O) in the year 2020; however, in September 2021, a court in the United States found in favor of Apple by a significant majority.

Apple is challenging a portion of a verdict that would necessitate modifications to the App Store’s regulations. Epic has requested that the United States Supreme Court reconsider crucial allegations in the lawsuit that Apple is currently involved in.

An attorney for Epic stated on Monday that the company intentionally broke the laws of the Play Store by circumventing its payment processes in order to enable users to make in-app transactions directly with Epic. Google subsequently blocked “Fortnite,” and Epic sued to contest this decision.


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