In a recent legal development, a US Jury has ruled that Google’s current app store policies infringe on Section 2 and 1 of the Sherman Antitrust Act and the California Cartwright Act. This ruling could have far-reaching impacts on the global technology marketplace.
The case, instigated by Epic Games, creators of the immensely popular game Fortnite, and Match Group, a firm that designs dating apps, challenged the policies of the Google Playstore. The filing accused Google of forcing developers to utilize Google’s software for in-app purchases and subscriptions, in turn giving Google a cut of all transactions—critics argue such a policy represents a financial imposition on developers.
In response to a workaround by Fortnite, which enabled users to make in-app purchases directly through their website rather than surrendering a portion of profits to Google, Google and Apple both removed Fortnite from their app stores. Epic Games remained as the lone plaintiff after Match Group settled with Google.
Key to the case’s outcome was the jury’s determination that Android’s app distribution market and in-app billing constituted antitrust markets. They found that Google engaged in monopolistic practices in these markets, unreasonably restraining trade and causing harm to Epic Games with their anticompetitive practices.
Ahead of a separate judicial process to establish a penalty next year, Epic Games celebrated the ruling. They proclaimed it a victory for developers and consumers, accusing Google of abusing their monopoly to extract excessive fees and stifle competition. Google, however, remains committed to their users, partners, and Android ecosystem, pledging to continue to defend their business model. Google’s statement emphasized the choice and openness that Android and Google Play provide.
This case is set against the backdrop of Epic Games losing a similar lawsuit against Apple in 2021, a case Epic Games is currently petitioning to bring before the US Supreme Court for review. The focus on app store policies extends beyond the US too – antitrust cases against Apple and Google’s app stores are appearing across the globe, from the Netherlands to South Korea to the European Union.
You can read the full story on this latest antitrust legal development, and its potential implications for future policy on the JURIST website here.