Epic Games won its monopoly case against Google
Image: Google
Epic Games was handed a victory royale over Google on Monday, when a federal jury ruled the tech giant’s Android operating system runs its app store as an illegal monopoly – a decision that could upend how businesses make money on in-app purchases.
Some quick background: In 2020, Epic began encouraging Fortnite players to pay the company directly for in-game purchases on mobile devices, rather than routing their payments through app stores owned by Google and Apple, who take a standard 30% commission. The two tech giants removed Fortnite from their app stores in response, leading Epic to file retaliatory antitrust lawsuits.
- In the Apple suit, a federal judge ruled against Epic for most of its claims, but also ordered Apple to allow developers to do direct business with users via the web.
But in the Google lawsuit, things went a bit differently. In contrast to Apple, which agreed to a trial decided by a single judge, Google requested a federal jury to oversee its Epic showdown.
- During the trial, Epic successfully argued that Google violated antitrust law by using agreements with companies like Samsung to prevent competing app stores from gaining traction on Android phones, allowing Google to earn excess profits from developers.
- On the flip side, Google failed to convince jurors that its app store payment policy is in line with the rest of the market, and that the Play Store shouldn’t be classified as a monopoly because Apple devices are more popular in the US.
👀 Looking ahead… A federal judge will decide early next year what remedies Epic will be awarded, which could include an order forcing Google to allow competing app stores on Android devices.
📊 Flash poll: Do you agree with the federal jury’s decision that found Google’s Play Store represents an illegal monopoly?
See a 360° view of what media pundits are saying →
Sprinkles from the Left
- Some commentators argue that Apple and Google provide some benefits to consumers by operating their app stores as walled gardens, but also say consumers deserve more of a choice in the app market.
- Others contend jurors were right to find that Google illegally operated its app store by offering deals to major players to avoid competition and rake in more in-app purchase fees.
- “The Battle Royale Over Apple’s App Store” –Peter Coy, NY Times
- “Google and Epic Weren’t Able to Hug It Out” –Jessica Karl, Bloomberg
- “The Apple Tax Is Rotten” –Farhad Manjoo, NY Times
Sprinkles from the Right
- Some commentators argue those looking to break up so-called Big Tech monopolies should bear in mind that they need to do more than show a company is big and profitable, but that they represent a harm to consumers and competition.
- Others contend that opening up app stores to outside competition wouldn’t completely do away with Google and Apple’s dominance in the industry, but it also represents a threat to the tech giants’ massive profits and could motivate them to provide a better consumer product.
- “An Antitrust Victory for Apple” –WSJ Editorial Board
- “The App Store As We Know It Is Dead, Thanks To Epic Games (And Europe)” –John Koetsier, Forbes
- “Will we finally be able to rein in the abusive power of Big Tech?” –NY Post Editorial Board
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