Google loses battle in antitrust court with Fortnite video game makers
A jury ruled Monday that Google violated antitrust laws to collect fees and limit competition from Epic Games and other developers in the Play mobile app store, in a case that could rewrite the rules on how thousands of companies make money from the smartphone operating system from Google, Android.
After deliberating for just over three hours, the nine-member federal jury sided with Epic Games on all eleven questions in a month-long trial that was the latest twist in a three-year legal battle.
The jury in San Francisco found that Epic, the maker of the popular game Fortnite, proved that Google had maintained a monopoly in the smartphone app store market and engaged in anticompetitive conduct that harmed the video game maker.
Google could be forced to change its Play Store rules, allowing other companies to offer competing app stores and making it easier for developers to avoid the discounts they receive on in-app purchases. And the verdict could jeopardize the company’s ability to collect commissions on app store purchases.
Judge James Donato will decide early next year what measures are needed to address Google’s behavior.
Throughout the trial, Google’s lawyers and executives had argued that it was competing with Apple’s App Store, which is more popular in the United States, making it impossible to operate an Android monopoly.
The ruling boosted Epic’s years-long quest to weaken the power Google and Apple have over the mobile app ecosystem, and came two years after Epic largely lost a similar case against Apple — a ruling that both sides are seeking to appeal to join the US. High Council.
In pursuing the case against Google, which was filed in 2020, the developer had sought to keep a larger share of the revenue it generates from in-app purchases and offer an app store that would compete with Play on the Android operating system.
Google fought Epic’s claims at the same time it was defending itself in another antitrust lawsuit in Washington, DC. The Justice Department and dozens of states have accused the company of illegally maintaining a search and advertising monopoly, in a landmark antitrust case that could reshape tech power when it is decided next year.
On the Play Store, Google charges app makers a 15 percent fee on customer payments for app subscriptions and up to 30 percent on purchases made in popular apps downloaded from the store. Google says 99 percent of developers qualify for a 15 percent or lower reimbursement for in-app purchases.
This is a development story. Check back for updates.