In a landmark ruling, a California jury found that Google violated antitrust laws by maintaining a monopoly on the Android app store and engaging in anti-competitive practices. This victory for Epic Games, the maker of the popular game Fortnite, could have significant ramifications for the entire app store ecosystem.
In 2020, Epic Games implemented a direct payment system within Fortnite for Android, bypassing Google’s payment system and avoiding the 30% cut that Google takes on in-app purchases. Google responded by removing Fortnite from the Play Store, accusing Epic of violating its terms of service.
Epic Games then filed an antitrust lawsuit against Google, alleging that the company was using its dominant market position to stifle competition and harm consumers. The lawsuit focused on two main points:
The Verdict:
The court’s decision could have a major impact on the mobile app ecosystem. Here are some potential consequences:
We can’t tell yet what the lasting effects of this decision will be. However, it is clear that this is a major victory for Epic Games and could lead to significant changes in the way apps are distributed and monetized on mobile devices.
The antitrust battle between Epic Games and Google is far from over. Well, recently Google has already announced that it will appeal the verdict. Also, we can expect that this case will probably keep moving through the courts for a few more years. But there’s no doubt that this will be a big deal for the app store business as well. The court’s call could totally change how apps get spread and make money on phones, maybe making the market more open and competitive.
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