Jury Finds Google Guilty of Illegal App Store Monopoly in Epic Games Lawsuit

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In a significant legal development, the jury has ruled in favor of Epic Games in their lawsuit against Google, asserting that Google has established an unlawful monopoly within its app store ecosystem. This verdict comes three years after Epic Games initiated legal action against both Apple and Google, alleging the existence of illegal app store monopolies. Moreover, the jury recognized an illicit connection between Google's Google Play app store and its Google Play Billing payment services. They also determined that Google's distribution agreement and Project Hug deals with game developers and original equipment manufacturers (OEMs) were anticompetitive in nature.

Google has announced its intention to appeal the verdict, emphasizing that the trial demonstrated their robust competition with Apple, various Android device app stores, and gaming consoles. (For Google's full statement, please refer to the end of this document.)

The jury's unanimous decision, reached after only a few hours of deliberation, addresses critical questions:

  1. Google's Monopoly Power: The jury affirmed that Google possesses monopoly power within the Android app distribution and in-app billing services markets.

  2. Anticompetitive Behavior: They found that Google engaged in anticompetitive practices within these markets.

  3. Injury to Epic: The jury concluded that Epic Games suffered harm due to Google's actions.

In response to the outcome, Epic Games expressed in a company blog post that the verdict benefits app developers and consumers globally. They contend that Google's app store practices are unlawful, involving the exploitation of their monopoly to impose excessive fees, stifle competition, and hinder innovation. This verdict carries historic significance, particularly considering that Epic Games faced a less favorable outcome in a similar legal battle against Apple two years ago. During that case, Judge Yvonne Gonzalez Rogers determined that the dispute was unrelated to apps.

The specific consequences of this victory remain uncertain. The determination of appropriate remedies will fall to Judge James Donato, who will decide whether and how to grant Epic Games' request for app developers to have complete freedom to establish their own app stores and billing systems on the Android platform. Both parties are scheduled to meet with Judge Donato in January to discuss potential remedies. While Epic did not seek monetary damages, Epic Games CEO Tim Sweeney has suggested that the company stands to gain significant financial benefits if relieved from Google's fees.



Source: the verge

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