Epic Games wins lawsuit against Google over alleged Android App Store monopoly

Epic Games, the maker of Fortnite, won a major court battle against Google as a jury found the tech giant holds an illegal monopoly through its Android app store.

Epic Games wins lawsuit against Google over alleged Android App Store monopoly. Picture: Supplied

In a landmark decision, Epic Games, the creator of Fortnite, has emerged triumphant in a major US court battle against Google. The jury verdict concluded that Google exercises illegal monopoly power through its Android app store.

Epic Games initiated legal action against both Google and Apple in 2020, accusing the tech giants of abusing their control over app stores, leading to complaints from developers about the perceived unfair “tax” imposed on financial transactions ranging from 15 to 30 per cent.

The jury swiftly reached a decision against Google, finding the company employed various illegal strategies to maintain a monopoly on its app store for Android phones. Epic CEO Tim Sweeney broke into a wide grin after the verdict was read, slapped his lawyers on the back, and shook the hand of a Google lawyer, who he thanked for his professional attitude during the proceedings.

“Victory over Google!” he posted on X (formerly Twitter).

“After four weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts.”

Epic Games, the maker of Fortnite, won a major court battle against Google as a jury found the tech giant holds an illegal monopoly through its Android app store. Picture: AFP

However, the case’s resolution now rests with the judge, who will determine the appropriate measures to address the harm identified by the jury. Despite Google’s intention to appeal, the case may extend for months or even years.

“We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem,” said Wilson White, Google’s vice president for government affairs & public policy.

Notably, Android devices command approximately 70 per cent of the global smartphone market, making the implications of this decision far-reaching.

During the trial, revelations surfaced regarding Google’s aggressive efforts to establish the Google Play app store as the exclusive conduit for payments to third-party apps, including Fortnite. The jury’s perspective differed from Google’s claim that it technically allows Android apps to be downloaded from different stores — an option Apple prohibits on the iPhone.

Just before the Play Store trial started, Google sought to avoid having a jury determine the outcome, only to have its request rejected by US District Judge James Donato. Now, it will be up to Donato to decide what steps Google will take to unwind its illegal behaviour in the Play Store. The judge indicated he will hold hearings on the issue during the second week of January.

Epic Games initiated legal action against both Google and Apple in 2020, accusing the tech giants of abusing their control over app stores. Picture: AFP

While Epic Games secured a victory in challenging Google’s practices, Apple succeeded in a similar case related to the iPhone app store. The outcome of the 2021 trial is currently under appeal at the US Supreme Court.

Apple and Google defend their app shop commissions as industry standard, citing benefits such as reach, transaction security, and malware prevention. However, ongoing legal challenges highlight the intensifying scrutiny of tech giants’ practices.

Google is also facing additional legal troubles in Washington, where the Justice Department accuses the company of acting unlawfully to preserve its search engine dominance.

—with AFP and the New York Post