Google has suffered a defeat in the legal dispute with the game developer Epic. The court ruled that the internet giant was operating an illegal monopoly with its app store. The ruling could have industry-wide consequences.
Google has suffered a bitter setback in the protracted legal battle over its app marketplace. A US federal court ruled in favor of the plaintiff Epic Games on all points and found that Google was operating an illegal monopoly with its Play Store. The Play Store is protected by anti-competitive barriers that harm smartphone users and software developers. “Victory over Google!” wrote Epic boss Tim Sweeney in the short message service X.
Google wants to appeal
Epic Games, which is behind the popular game “Fortnite,” filed a lawsuit against Google three years ago. The stumbling block was the fees of up to 30 percent that Google withholds from app sales.
The process began at the beginning of November. After the court decision, federal judge James Donato must now decide what steps the Internet giant should take. The judge indicated that there would be hearings in January. Google, for its part, immediately announced that it would appeal.
Similar proceedings against Apple
Epic also sued the technology company Apple in 2020. In this case, a California federal judge ruled in 2021 that Apple had to open its App Store’s payment system to developers. However, the judge rejected Epic Games’ accusation that Apple had a monopoly. This case is already being appealed to the US Supreme Court.
At its core, the legal dispute is about the practice of the app store operators Apple and Google of charging high fees for applications that are downloaded via their platforms. Above all, Epic Games wants to ensure that developers can sell their applications and digital content through other payment processors.
Opening up to others Payment processor?
In August 2020, the “Fortnite” developer slipped a version of the game past Apple and Google into their app stores, which, contrary to the platform rules, was equipped with its own payment system without a levy to the corporations. Apple and Google then removed the “Fortnite” app from their download offerings.
Google and Apple argue that the fees for app sales are in line with the market. The income generated is necessary to guarantee the security of the platforms and payments. Google’s Android system has a market share of around 80 percent in smartphone sales, Apple makes up the rest with its iPhones.
Complete reorganization possible
If the current ruling stands, the entire app store economy could be reorganized. Developers should then have more influence over how their apps are distributed and how they benefit from them. In the EU, according to the new digital laws, it is planned that competing app stores will be allowed on platforms.