Epic’s Legal Showdown: Google’s Monopoly Moniker – A Billion-Dollar Battle Unfolds in App Store Arena

In a landmark verdict, a jury has unanimously ruled in favor of Epic Games in the Epic Games v. Google case, finding that Google established an illegal monopoly with its Google Play app store and Google Play Billing service. The decision comes three years after Epic Games initiated legal proceedings against Google and Apple, accusing both tech giants of running unlawful app store monopolies.

Jury Verdict

After just a few hours of deliberation, the jury delivered a resounding “yes” to all key questions:

1. Google possesses monopoly power in the Android app distribution markets and in-app billing services markets.
2. Google engaged in anticompetitive practices within those markets.
3. Epic Games suffered injury due to Google’s behavior.

The jury also concluded that Google maintained an illegal tie between its Google Play app store and its Google Play Billing payment services. Additionally, distribution agreements, including Project Hug deals with game developers and OEMs, were deemed anticompetitive.

Google’s Response and Future Plans

Google’s Vice President of Affairs and Public Policy, Wilson White, announced the company’s intention to appeal the verdict. White emphasized that the trial showcased Google’s fierce competition with Apple and other Android app stores and gaming consoles.

“The trial made clear that we compete fiercely with Apple and its App Store, as well as app stores on Android devices and gaming consoles.”

Epic Games’ Perspective

Epic Games celebrated the verdict in a blog post, asserting that it is a victory for app developers and consumers globally. The post contends that Google’s app store practices are illegal, alleging abuse of monopoly power to extract exorbitant fees, stifle competition, and impede innovation.

“Today’s verdict is a win for all app developers and consumers around the world. It proves that Google’s app store practices are illegal and they abuse their monopoly to extract exorbitant fees, stifle competition and reduce innovation.”

Case Highlights and Differences from Apple Battle

Unlike its legal battle with Apple two years ago, Epic Games v. Google focused on secret revenue-sharing deals between Google, smartphone manufacturers, and major game developers. These deals, according to evidence presented, were designed to suppress rival app stores, with Google expressing specific concerns about Epic Games.

Remedies and Future Discussions

While Epic Games did not seek monetary damages, the court will now determine the appropriate remedies. Epic aims for a ruling that grants every app developer the freedom to introduce their own app stores and billing systems on Android. Judge James Donato is set to discuss potential remedies with both parties in the second week of January.

However, the judge has already indicated that he will not grant Epic’s additional request for an anti-circumvention provision, emphasizing that such measures are unnecessary, and if issues arise, parties can return to court.

“We don’t do don’t-break-the-law injunctions… if you have a problem, you can come back,” Judge Donato stated.

Financial Implications for Epic Games

While the financial implications are yet to be determined, Epic Games CEO Tim Sweeney suggested that the company stands to make significant gains, potentially reaching hundreds of millions or even billions of dollars, if relieved from paying Google’s fees.

In a legal landscape marked by battles over app store practices, the Epic Games v. Google case stands out as a historic victory, shaping the future of app distribution on the Android platform.