Court supports Epic Games, ruling Google Play Store as an illegal monopoly
Court supports Epic Games, ruling Google's Play Store as an illegal monopoly changing app sales forever.
The Ninth Circuit Court of Appeals has affirmed a jury's decision that Google's Play Store operates as an illegal monopoly. The court has demanded Google to facilitate access for third-party app stores and allow developers to use alternative billing methods, which might disrupt Google's existing business model. Epic Games originally rose to prominence in the dispute due to their highly popular game Fortnite and the substantial fees charged by app stores for in-app purchases.
Epic Games initiated legal action against Apple and Google in 2020 after trying to circumvent traditional payment systems, leading to Fortnite's removal from both app platforms. While Epic's lawsuit against Apple concluded in favor of Apple, the court found Google's practices concerning third-party apps and payment systems anticompetitive. Google's arrangements with device manufacturers effectively restricted competition and solidified its monopoly in the Android app marketplace.
Several legal strategies were employed by Google in its appeal, including challenging the exclusion of comparisons with Apple and suggesting the issue was too complex for a jury decision. However, the Ninth Circuit dismissed these arguments, confirming with extensive evidence that Google's dominance was maintained through unlawful practices. Judge Margaret McKeown highlighted that Google's position was reinforced by network effects and strict terms on developers and device makers, necessitating significant changes to the Play Store structure.
In response to the verdict, Google is ordered for at least three years not to offer developers incentives for exclusively launching their apps on the Play Store. This verdict not only compels Google to open its Play Store to rival app stores but also permits developers to direct users to alternative payment methods, potentially improving their revenue.
The broader implications of the ruling could usher in a more competitive environment in the Android app ecosystem. However, Google has not yet exhausted its legal options and may pursue Supreme Court intervention to overturn or modify the current ruling.
Sources: TechSpot, Ars Technica