Jury Finds Google App Store Is a Monopoly in Victory for Epic Games

Todd Spangler
·3 min read
2

Epic Games, maker of the popular Fortnite game, scored a big win in its legal fight with Google after a federal jury found the internet giant operates a monopoly over Android apps.

Following a monthlong trial, a jury in U.S. District Court in San Francisco issued a verdict Monday that found Google has monopoly power in Android app distribution and in-app billing services markets. In addition, the jury found that Google illegally tied its Google Play app store and its Google Play Billing payment services. A copy of the verdict form is available at this link.

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“Victory over Google!” Epic Games CEO Tim Sweeney posted on X. “After 4 weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts. The Court’s work on remedies will start in January. Thanks for everyone’s support and faith! Free Fortnite!”

In August 2020, Epic Games sued Google and Apple, alleging similar claims against Apple’s App Store. Epic asserted that both internet companies operate illegal monopolies that force app makers to use the companies’ in-app payment systems and impose a 30% “tax” on apps. In the case against Apple, a judge in September 2021 ruled that there was no evidence Apple’s App Store represented a monopoly and that Apple’s 30% fee it charges app developers was justified. Both Epic and Apple are seeking to appeal the case to the Supreme Court.

In the Google case, U.S. District Judge James Donato will decide what remedies Epic will be awarded. Epic has not sought monetary damages in the lawsuits. Rather, Epic “seeks injunctive relief that would deliver Google’s broken promise: an open, competitive Android ecosystem for all users and industry participants,” the games company said in its original lawsuit.

Google said it planned to appeal the verdict. “The trial made clear that we compete fiercely with Apple and its App Store, as well as app stores on Android devices and gaming consoles,” Wilson White, Google VP of government affairs and public policy, said in a statement. “We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem.”

According to a blog post on Epic Games’ site, the jury’s verdict Monday “proves that Google’s app store practices are illegal and they abuse their monopoly to extract exorbitant fees, stifle competition and reduce innovation.” Google imposes a “30% tax on developers simply because they have prevented any viable competitors from emerging to offer better deals,” according to Epic.

“Over the course of the trial we saw evidence that Google was willing to pay billions of dollars to stifle alternative app stores by paying developers to abandon their own store efforts and direct distribution plans, and offering highly lucrative agreements with device manufacturers in exchange for excluding competing app stores,” Epic said. “These deals were meant to cement Google’s dominance as the only app store in town — and it worked. More than 95% of apps are distributed through the Play Store on Android.”

Meanwhile, Sen. Amy Klobuchar (D-Minn.) weighed in on X, posting, “I’m not surprised by this verdict. Our fight for fairer competition and rules of the road for mobile app stores and other online marketplaces is gaining momentum. Now, we must take the next step in Congress to finally update our consumer laws for the digital age.”

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