Epic Games has celebrated the verdict delivered by a jury in a California court in its case against Google, describing it as a victory for app developers and consumers. The company asserts that the decision confirms Google’s app store practices exploit its monopoly power.
The jury, in the U.S. District Court for the Northern District of California, found Google, owned by Alphabet, Inc., guilty on all counts on December 11. These charges include engaging in anticompetitive conduct in the Android app distribution market and in-app billing services; entering into agreements that unreasonably restrained trade in an antitrust market, violating both the Sherman Act and California state law; and unlawfully tying the use of the Google Play Store to Google Play Billing.
In a press release issued by Epic Games following the jury's verdict, it was revealed that evidence submitted during the trial indicated that Google paid billions of dollars to suppress competition from other app stores. This was achieved either by paying developers to abandon their own projects or by entering into profitable deals with device manufacturers that exclude competing app stores. "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," stated Epic Games in the release. The company, known for developing the popular Fortnite video game, also claimed that Google imposes a 30% tax on app developers if they have prevented viable competitors from offering better deals. Furthermore, Epic Games alleged that Google even admitted in court that its offer of a 26% rate on third-party payment options for developers is not genuine.
Open Markets Institute Executive Director Barry Lynn described the verdict as a "common-sense conclusion," He went on to say "Google is a monopoly that abuses its power. More specifically, in this case, Google’s bosses take advantage of the corporation’s control of essential infrastructure to manipulate and extort American businesses and gouge American consumers," Lynn stated.
According to a Reuters report, in January, U.S. District Judge James Donato will hear arguments on Epic Games' request for a court order to force Google to revise how it operates the Play store. Reuters also reported that Google has announced its intention to appeal this month’s verdict.
