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NEWS / 2023 / 12 / 11 / JURY TO DECIDE: GOOGLE ANTITRUST TRIAL CENTERS ON ANDROID APP STORE PAYMENTS

Jury to Decide: Google Antitrust Trial Centers on Android App Store Payments

16:22 11.12.2023

A federal court jury in San Francisco is preparing to begin deliberations in an antitrust trial that focuses on whether Google's app store for Android smartphones has engaged in illegal practices that harm consumers and stifle innovation. The trial, which has lasted for four weeks, stems from a case filed by Epic Games, the creator of the popular video game Fortnite. Prior to the jury's deliberations, lawyers from both sides will present their closing arguments.

Throughout the trial, testimony was provided by Google CEO Sundar Pichai and Epic CEO Tim Sweeney. Pichai, who occasionally stood behind a lectern due to a health issue, often explained complex topics in a professorial manner. On the other hand, Sweeney presented himself as a video game enthusiast with a mission to take down a greedy tech giant. Epic has alleged that Google has been leveraging its control over the Android software, which powers the majority of smartphones worldwide, to protect its payment system within the Play Store, where Android apps are distributed. Similar to Apple's iPhone app store, Google collects a commission of 15-30% from digital transactions completed within apps, resulting in billions of dollars in annual profit.

Google has vehemently defended its commission structure, citing the need to recoup the significant investments made in building the Android software, which has been provided to manufacturers since 2007 to compete against the iPhone. The company also points to the presence of rival Android app stores, such as the one installed on Samsung smartphones, as evidence of a competitive market. However, Epic has presented evidence suggesting that Google's claim of welcoming competition is a facade, pointing to the significant sums of money it pays to companies like Activision Blizzard to dissuade them from establishing rival app stores.

The jury's verdict is likely to hinge on how the smartphone app market is defined. Epic contends that Google's Play Store operates as a de facto monopoly, driving up prices for consumers and discouraging app developers from creating new products. In contrast, Google argues that the market is broad and highly competitive, encompassing not only its Play Store but also Apple's iPhone app store and other Android alternatives.

Google's assertion that it competes with Apple in app distribution has shed light on the companies' close relationship in the realm of online search. This connection has become a focal point in another major antitrust trial taking place in Washington, where the U.S. Justice Department accuses Google of abusing its dominance in the online search market. The case alleges that Google pays billions of dollars to secure its position as the default search engine on various web browsers and smartphones, including the iPhone. Evidence presented in both the San Francisco and Washington trials has revealed that Google paid $26.3 billion in 2021 to maintain its default search status, with a significant portion of that sum going to Apple. Sundar Pichai confirmed that Google shared 36% of its search revenue from the Safari browser with Apple in 2021.

Epic's lawsuit against Google's Android app store mirrors a similar case it brought against Apple and its iPhone app store. The Apple trial, which took place in 2021 during the pandemic, resulted in Epic losing on all of its key claims. However, the Apple case was decided by a federal judge, while the verdict in the Google trial will be determined by a jury.

Overall, the outcome of the trial will have significant implications for the app market and the relationship between tech giants like Google and Apple. It will provide insight into the extent of Google's control over the Android ecosystem and the potential impact on consumers and innovation.

/ Monday, 11 December 2023 /

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20/05/2024    info@iqtech.top
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