In a decision that could give a boost to developers to gain more control over their apps and profits, Google (Alphabet’s Google) lost an antitrust case against Fortnite maker Epic Games, which accused Google of unfair competitive practices by using its dominant position to stifle competing app stores and imposing excessive fees of up to 30% on developers. By tying the Play Store to its own billing service, Epic stated that Google restricts developers’ freedom by shutting down alternative options.
If the ruling stands, developers may gain greater control over their apps and profits, significantly reducing the power of Google and Apple, which run the largest app stores globally. The ruling for Epic Games also coincides with Google’s ongoing defense in a larger antitrust case brought against it by the U.S. Department of Justice regarding its search business.
Impact on the $200 Billion App Store Industry
Google lost the antitrust case against Fortnite maker Epic Games, which accused Google of maintaining illegal monopoly power in its Play app store. This decision could disrupt the $200 billion app store industry.
Impact of the Ruling on Google and Apple
Epic accused Google of unfair competitive practices by using its dominant position to stifle competing app stores and imposing excessive fees on developers. If the ruling holds, developers may gain greater control over their apps and profits, significantly reducing the power of Google and Apple as they manage the largest app stores globally.
Impact on Google and Other Antitrust Cases
The Epic Games case coincides with Google’s ongoing defense in a larger antitrust case against it by the U.S. Department of Justice concerning its search business. The court indicated that it would begin working on measures Google must implement to address this issue next month. Google said it plans to appeal the ruling and denies any wrongdoing, asserting that it operates in a highly competitive market alongside the Apple app store.
Google’s Previous Settlement
Earlier this year, Google reached a settlement in a class-action lawsuit claiming it charged excessive fees to users, alongside a case brought by dating app developer Match Group, which accused Google of restricting app distribution on Android phones.
Shares of Google’s parent company Alphabet fell by less than 1% in early trading on Tuesday around 11:00 AM Eastern time following the news, although they have risen by more than 48% so far this year.
Leave a Reply