US video game maker Epic Games Inc. has won its antitrust case battle against search giant Alphabet Inc.’s Google LLC, which may introduce significant changes to mobile app marketplaces and the overall app store economy.
Court filing showed that a jury in the US found for ‘Fortnite’ publisher on all counts, ending a monthlong trial in the company’s lawsuit, which accused Google’s Play Store of engaging in illegal practices and misusing their monopoly to charge steep fees, undermine competition, and curb innovation.
It was unanimously decided that the online Android marketplace has anticompetitive measures in place, which has impacted smartphone customers and software developers.
The ruling concludes a high-profile legal fight between Epic Games and Google that has lasted three years. The North Carolina-based company first filed the complaint against the California-based tech firm in 2020.
Epic Games’ win came two years after it lost a similar case to Apple Inc.’s App Store. The iPhone maker has requested the Supreme Court to overturn the decision prohibiting app developers from using other payment methods for in-app purchases.
The video gaming company has also asked the Supreme Court to reexamine the case for different reasons.
Google Play Store May Undergo Major Changes
The unanimous verdict marks a significant defeat for Google, raising the possibility of granting app developers such as Epic Games more control over how they distribute and earn from their apps.
The online game maker has claimed that Google had unlawfully tied its Play Store to its billing service, preventing developers from using only one of the facilities to list their apps on the store.
Play Store accounts for a small part of Google’s revenue, although it is a crucial gatekeeper to Android-powered devices worldwide.
The search behemoth may need to consider other app marketplaces on Android mobile phones and tablets and incur a revenue loss due to the cut it obtains from in-app purchases.
US District Judge James Donato, who headed the trial, would decide whether the search company should consider employing payment and app distribution methods beyond Play Store.
Epic Games sought no monetary compensation from Google, although it requested a change in its app store guidelines.
Epic Games chief executive Tim Sweeney said they would seek fundamental changes in practice to Play Store but has not detailed the solution they plan to request in 2024.
Google has also confirmed its plans to appeal the decision.
