A federal court jury has unanimously determined that Google’s Android app store has been shielded by anticompetitive barriers, causing harm to smartphone consumers and software developers. The decision, reached after just three hours of deliberation following a four-week trial, is a setback for a key component of Google’s technology empire. The legal dispute, initiated by Epic Games, the creator of the popular Fortnite video game, alleged that Google abused its power to protect its Play Store from competition, securing a lucrative revenue stream that generates billions annually. Similar to Apple’s App Store, Google imposes a commission ranging from 15% to 30% on digital transactions within apps.
While Apple successfully defended itself in a comparable case, the nine-person jury in the Play Store trial saw the situation differently. Despite Google technically permitting Android apps to be downloaded from different stores (in contrast to Apple’s policy for the iPhone), the jury found in favor of Epic Games.
Google attempted to avoid a jury verdict before the trial, but its request was rejected by U.S. District Judge James Donato. The judge will now determine the corrective actions Google must take to address the anticompetitive behavior in the Play Store, with hearings scheduled for the second week of January.
Epic Games’ CEO, Tim Sweeney, expressed jubilation after the verdict, declaring “Victory over Google!” on social media. The company hailed the decision as a win for app developers and consumers worldwide.
Google, however, plans to appeal the verdict, asserting that Android and Google Play offer more choice and openness than other major mobile platforms. Depending on the enforcement of the jury’s decision, Google could face the loss of billions in annual profits from Play Store commissions. Notably, this won’t directly impact the company’s primary revenue source—digital advertising linked to its search engine, Gmail, and other services.
During the trial, Epic’s lawyer portrayed Google as a ruthless bully using a “bribe and block” strategy, while Google’s lawyer depicted Epic as a self-interested game-maker attempting to save money through legal action. Key witnesses, including Google CEO Sundar Pichai and Epic’s Tim Sweeney, provided testimony.
The case emphasized the commission structure as a means for Google to recoup the substantial investment in building and providing the Android software since 2007. Google argued that a great app store is crucial for Android phones to compete against the iPhone.
Epic countered by presenting evidence of Google’s efforts to discourage competition, citing payments to companies like Activision Blizzard and the use of “scare screens” to warn consumers of security threats when considering alternatives to the Play Store.
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The verdict in this case may have implications for Google’s broader empire, as it faces another significant antitrust trial in Washington, focusing on the company’s relationship with Apple in online search. This trial could further scrutinize Google’s practices, potentially impacting its dominant position in the technology industry.
