A US jury decided Monday that Google’s current app store policies violate Sections 1 and 2 of the Sherman Antitrust Act as well as the California Cartwright Act. Sometime next year, there will be a separate judicial process to determine the penalty that Google will suffer as a result of the jury’s Monday decision.
Epic Games, the designers of the popular game Fortnite, filed an antitrust lawsuit in 2020 against Google, its parent company Alphabet Inc. and dating app company Match Group in the US District Court for the Northern District of California. In its suit, Epic Games alleged that the Google Playstore, the app store for Android phone and tablet users, forces game developers to use Google’s software for in-app purchases and subscriptions, requiring the developers to give a portion of all purchases and subscriptions to Google.
The suit came after Fortnite was dropped by both Google and Apple’s app stores in response to it allowing users to make in-app purchases through their website instead of giving a cut of profits to Google and Apple. Match Group settled with Google before going to trial, making Epic Games the sole plaintiff. The jury sided with Epic Games, determining that Android’s app distribution market and in-app billing constituted antitrust markets. The jury also found that Google engaged in monopolistic practices in those markets and that Google unreasonably restrained trade in both markets. Additionally, the jury found that Epic Games was harmed by Google’s monopolistic and anticompetitive practices. The separate judicial process of determining the remedy for Google’s violation is expected to begin within the next year.
Epic Games celebrated the decision on Monday. The company released a statement, saying, “Today’s verdict is a win for all app developers and consumers around the world. It proves that Google’s app store practices are illegal and they abuse their monopoly to extract exorbitant fees, stifle competition and reduce innovation.” Google released a statement on the verdict to CNN, writing, “Android and Google Play provide more choice and openness than any other major mobile platform…We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem.”
The verdict comes after Epic Games lost a similar suit with Apple in 2021 on all but one count. Epic Games appealed the judgment to the US Court of Appeals for the Ninth Circuit, which affirmed most of the lower court’s ruling. The case has continued to wind its way through the federal court system, with Epic Games requesting the US Supreme Court grant certiorari to review the case in September.
This is only one of many antitrust cases facing Apple and Google’s app stores globally. In 2021, the Dutch Authority for Consumers and Markets (ACM) ruled that Apple’s commission policy on in-app purchases violated Dutch antitrust law. South Korea’s legislature also took up the issue of whether Apple and Google should be able to claim a portion of in-app purchase profits in 2021 as well. In 2020, the European Commission’s Antitrust Division opened an investigation into Apple’s app store policies in relation to in-app purchases for music apps, such as Spotify.
