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NEWS / 2023 / 12 / 12 / FEDERAL JURY FINDS GOOGLE'S ANDROID APP STORE GUILTY OF ANTITRUST VIOLATIONS

Federal jury finds Google's Android app store guilty of antitrust violations

08:09 12.12.2023

In a high-profile antitrust trial, Epic Games, the creator of the popular game Fortnite, has emerged victorious against Google. Epic Games alleged that Google's Play app store operated as an illegal monopoly, abusing its power to shield its store from competition and imposing a fee of up to 30% on developers for in-app sales. The lawsuit, filed in 2020, challenged Google's anticompetitive practices and aimed to dismantle the company's control over its Play Store.

After four weeks of detailed court testimony, a California jury returned a unanimous verdict in favor of Epic Games, finding Google guilty of maintaining a monopoly. Epic's chief executive, Tim Sweeney, celebrated the victory, stating, "Victory over Google! After four weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts." The jury's decision came after just three hours of deliberation, underscoring the strength of the evidence presented by Epic Games.

Both Google and Apple charge a commission ranging between 15-30% on digital transactions within their respective app stores. Apple had previously won a similar case brought by Epic Games against the iPhone app store in 2021, but the jury in the play store case reached a different conclusion. It is worth noting that while Google technically allows Android apps to be downloaded from other stores, this option is not available on the iPhone.

During the trial, Epic Games' lawyer, Gary Bornstein, highlighted Google's actions that impaired competition, accusing the tech giant of systematically blocking other app stores on its Play Store. This trial shed light on Google's anticompetitive practices, revealing the extent to which the company manipulated the market to maintain its dominance.

Following the verdict, Google expressed its intention to appeal the decision. Jonathan Kravis, a lawyer for Google, argued that the company competes intensely on price, quality, and security against Apple's app store, stating, "This is not the behavior of a monopolist." Google emphasized that it will continue to defend its Android business model and remain committed to its users, partners, and the broader Android ecosystem.

The trial's outcome has significant implications for Google, as the company may face substantial financial consequences if the judge enforces the jury's verdict. The loss of billions of dollars in annual profit generated from Play Store commissions could impact Google's revenue stream, although its primary source of income from digital advertising tied to its search engine and other services will not be directly affected.

The trial also shed light on Google's attempts to avoid a jury trial, which were rejected by U.S. District Judge James Donato. Now, it will be up to Judge Donato to determine the steps Google must take to rectify its illegal behavior within the Play Store. Hearings on this matter will be held in the second week of January.

It is worth noting that Google settled related claims from dating app maker Match before the trial began. Additionally, the tech giant settled related antitrust claims made by US states and consumers, the terms of which have not yet been made public.

The jury's decision in favor of Epic Games is seen as a significant blow to Google and its control over the Android app store. The trial's findings highlight the need for increased scrutiny and regulation of tech giants to ensure fair competition and protect the interests of developers and consumers.

/ Tuesday, 12 December 2023 /

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20/05/2024    info@iqtech.top
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