Epic Games and Google are facing off in a second antitrust trial in two months.

Epic Games and Google are facing off in a second antitrust trial in two months.
Epic Games and Google are facing off in a second antitrust trial in two months.
  • On Monday, Epic Games will take Google to court in a second antitrust trial in two months.
  • The Android mobile Play Store will be the focal point of this case, specifically regarding how Google handles third-party mobile developers.
  • Developers have accused both Apple and Google of unfairly taking revenue from in-app payments and making it difficult to communicate with their customers.
After Hours
Google CEO Sundar Pichai (L), and Epic Games CEO Tim Sweeney.
Google CEO Sundar Pichai (L), and Epic Games CEO Tim Sweeney. (Reuters)

The company is returning to court for its second antitrust trial in two months, this time to defend its Android Play Store.

Google is currently facing two legal battles: one against the Department of Justice and a group of states in Washington, D.C., over monopoly claims in the District Court, and another against Epic Games in a federal court in San Francisco.

The trial against Google, starting Monday, centers on the company's treatment of third-party mobile developers and will be closely monitored by Apple, which runs the competing App Store. Both companies have been accused by developers of taking an unjust share of revenue from in-app purchases and making it harder for app creators to interact with their customers.

If Epic Games achieves a triumphant victory, it may compel Google to modify its Android platform, which imposes a 15% to 30% fee on digital goods and services bought through in-app purchases. This could enable Epic to have its own store pre-installed on devices, making it simpler for users to bypass Google's store and download games.

In August 2020, an incident occurred which led to a dispute between Epic and its customers over updates made to Fortnite that enabled direct billing for in-app purchases.

Both Google and Apple swiftly removed Fortnite from their stores, prompting Epic to file a lawsuit against them seeking to enable direct billing and the freedom to install the Epic Games Store on smartphones.

In 2021, Epic's suit against Apple went to trial and was appealed earlier this year. Epic lost on nine out of 10 counts, but could potentially win one concession regarding emailing customers if the Supreme Court decides to hear its case against Apple.

Meanwhile, Google still has to deal with the government.

The trial of the DOJ's monopoly case, which took place in September, centers on whether Google violated the law through exclusive agreements with mobile phone manufacturers and browser makers to make its search engine the default for consumers. The outcome of this case could determine whether Google is allowed to maintain its dominant position on smartphones through its use of its significant influence.

An antitrust trial against Google's online advertising business is set to commence in Virginia in early 2022, with the goal of compelling the company to make some divestitures.

The Epic suit has a significant distinction between what Google and Apple face in their cases: while Google permits "sideloading," or the installation of software from the web, Apple strictly prohibits it.

According to a source, Google's dominant market position allows it to abuse its power and limit consumers' access to apps, despite its ability to do so.

The person who asked not to be named revealed that Epic plans to highlight Google's agreements with handset manufacturers that prohibit the installation of alternative app stores, as well as agreements with app developers that prevent them from launching a competing app store.

Epic's argument will emphasize Google's violations of federal and California laws related to trade restraints, as well as the numerous steps and taps required to sideload an app on an Android device.

Google's main concern is demonstrating that these costs are necessary for operating a successful marketplace that developers rely on to reach users. The company will argue that its rates are reasonable and necessary for maintaining the platform's popularity.

Google's vice president of public policy and government affairs, Wilson White, stated in a blog post that Epic is seeking all the advantages of Android and Google Play without having to pay for them.

Google asserts that the fees it imposes on developers are among the lowest among major app stores, with 99% of developers selling digital content being charged a fee of 15% or less.

The judge in Apple's case recognized the company's competition with Google and ruled that it is legal for Apple to mandate developers to use its billing system, as held by the appeals court.

Sundar Pichai, key Android executives, and representatives from Google partners like Apple and are expected to testify, according to White.

On Tuesday, Epic Games announced that it had settled its claims against Google's Play Store. However, after the news broke, Epic CEO Tim Sweeney refused to back down and wrote on Twitter that "Epic will go to trial against Google alone."

The battle between Apple and Epic Games is a component of a broader antitrust struggle.

Apple's fight with Epic Games is part of a larger antitrust battle
by Lauren Feiner

technology