Google Found Guilty of Antitrust Violations in Play App Store Lawsuit

The Verdict

A jury in San Francisco has unanimously found that Google violated California and federal antitrust laws through deals that stifled competition in its Play mobile app store. This marks the first significant US courtroom loss for big tech in the ongoing efforts to curb the power of internet gatekeepers.

The lawsuit, brought by Epic Games in 2020, accused Google of restricting competition in the Play store, which accounts for over 95% of all downloads onto Android phones in the US.

Remedies Phase

The case now moves to a remedies phase where a judge will decide whether to order changes to Google’s business practices. If forced to make changes, users of devices powered by Google’s Android operating system could have more app options available at lower prices. This could include allowing downloads of rival app stores from Play or sharing a greater portion of sales with developers who sell digital items inside their apps. However, Google plans to challenge the verdict, and an appeal could delay any potential changes.

Epic’s Response

In response to the verdict, Epic Games issued an unsigned blog post calling it a win for all app developers and consumers. The post states that Google’s app store practices are illegal and that the company abuses its monopoly power to extract high fees, stifle competition, and impede innovation. Epic has called upon regulators and legislators to take further action to address the dominance of not only Google but also Apple in the smartphone market.

Upcoming Ruling on Google’s Search Monopoly

In mid-2024, a judge in Washington, DC, is expected to issue a ruling on whether Google has unlawfully maintained its monopoly over web search. This case was brought by the US Department of Justice and attorneys general for nearly every US state and territory.

Comparison to Epic v. Apple

Two years ago, Epic Games filed a similar antitrust lawsuit against Apple. However, the result was less favorable for Epic, with the judge ordering only one change to Apple’s App Store practices. Apple has not yet complied with the ruling as it awaits a decision from the Supreme Court. The outcome of this ongoing legal battle will have significant implications for the app marketplace and the power of big tech companies.

Google’s Decision to Go to Trial

Google’s decision to have a trial by jury, rather than a judge, for this case remains unclear. The company tried unsuccessfully to reverse course on the eve of jury selection. In addition, Google CEO Sundar Pichai and Epic CEO Tim Sweeney attempted to reach a settlement but were unable to come to an agreement.

Impact on App Developers and Consumers

The verdict in this lawsuit could have far-reaching effects on app developers and consumers. If Google is required to make changes to its business practices, it could result in increased competition, more app choices, and potentially lower prices for users of Android devices. However, the outcome of any appeals and future legal battles will ultimately determine the long-term impact on the app marketplace.

Source: Google’s App Store Ruled an Illegal Monopoly, as a Jury Sides With Epic Games