Epic Games Secures Victory Against Google in Monopoly Case, Sparking Debate
With the verdict in hand, the court now has the responsibility of determining the aftermath. Google swiftly announced an appeal against the ruling.
In 2020, Epic Games filed a lawsuit against tech giant Google. The central point of contention was the substantial 30% commission that Google charged on app sales. Epic Games accused Google of maintaining an illegal monopoly.
Moreover, in the same year, Epic Games also sued tech colossus Apple. In those proceedings, a California federal judge ruled in 2021 that Apple was obligated to make its app store payment system more accessible for developers. At the same time, the judge dismissed Epic Games' claim that Apple operated a monopoly. The trial against Google commenced only in early November.
The most widely-used operating systems, iOS by Apple and Android by Google, power the majority of smartphone devices. In 2020, Epic Games took on the two tech giants by releasing an update that included its own payment system, bypassing Apple's App Store and Google's Play Store. The two tech companies subsequently removed the "Fortnite" mobile app from their respective platforms, prompting Epic Games to confront them in court.
Google permits Android users to access alternative platforms for app and game downloads, setting it apart from iPhone manufacturer Apple. However, Epic Games argues that Google's system is hardly more open than Apple's iOS, mainly due to Google's business contracts with other companies.
Apple and Google consistently claim that the 30% commission on app sales is in line with industry standards. They cite the need for revenue generated from this commission to maintain app marketplace security and payment systems.
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The Ripple Effects of Epic Games' Victory:
- Third-Party App Stores Permitted:
- Intensified Competition: If successful, Epic Games' lawsuit could force Google to accept third-party app stores within the Google Play Store ecosystem, increasing competition and expanding app choices for users.
- Payment System Variety:
- Lower Fees: Developers could access alternative payment systems, reducing the 30% revenue cut currently levied by Google on in-app purchases, resulting in increased revenue for developers.
- Modified App Store Policies:
- Prohibition of Exclusive Pre-Installation: Google would be prohibited from making deals with device makers and carriers to pre-install the Google Play Store exclusively, allowing competitors to install their app stores until 2027.
- Impact on Google's Monopoly:
- Enhanced Regulatory Scrutiny: A win for Epic Games could prompt increased regulatory oversight of Google's business practices, potentially impelling the company to relinquish certain aspects of its business if it fails to rectify anti-competitive behaviors.
- Addressing Security Concerns:
- Security Standards Preservation: While Google argues that enabling third-party stores may compromise Android's security, a court ruling could require Google to develop measures to maintain security standards while accommodating competition.
- Industry-Wide Implications:
- Prospects for Xbox Mobile Store: Microsoft, a supporter of Epic's stance, could stand to gain from an open Android invironment, potentially launching its Xbox mobile store with more flexibility in app distribution and monetization.
- Global Regulatory Influence:
- Influencing Worldwide App Store Regulations: European regulations have already pushed Apple to relax restrictions. A similar judgment in the U.S. might shape global app store regulations, encouraging other tech giants to open their ecosystems to competition.
- Potential for Supreme Court Involvement:
- Delayed Enforcement: In the event of an appeal and subsequent loss at the 9th Circuit, the case could escalate to the United States Supreme Court, potentially resulting in years-long litigation and a continuation of Google's existing Play Store policies.
