Epic wins its antitrust lawsuit against the Play Store. What does this verdict mean for Google?
SAN FRANCISCO (AP) — Google lost an antitrust lawsuit over barriers to its Android app store, as a federal court jury has decided that the company's payments system was anticompetitive and damaged smartphone consumers and software developers.
It’s a blow to a major pillar of Google’s technology empire. But it's a win for Epic Games, the maker of the popular Fortnite video game that brought the lawsuit — and, analysts say, for the broader game developer community.
Below are some questions and answers about what the verdict means.
WHY DID EPIC SUE?
Epic, which is based in Cary, North Carolina, filed its lawsuit against Google three years ago, alleging that the internet search giant has been abusing its power to shield its Play Store from competition in order to protect a gold mine that makes billions of dollars annually. Just as Apple does for its iPhone app store, Google collects a commission ranging from 15%-30% on digital transactions completed within apps.
HOW DID GOOGLE LOSE?
The jury reached its decision with just three hours of deliberation after listening to two hours of closing arguments from the lawyers on the opposing sides of the case.
They sided with Epic, whose lawyer depicted Google as a ruthless bully that deploys a “bribe and block” strategy to discourage competition against its Play Store for Android apps. Google, Epic lawyer Gary Bornstein said, makes it too cumbersome or worrisome for consumers to download Android apps from other distribution outlets than the Play Store.
“Google makes it a challenge to put a competitor on the phone (powered by Android),” Bornstein said. “If a competition were a race, it’s like Google gets to run on a nice smooth track and everyone else has to run on quicksand.”
In its original lawsuit, Epic said Google “prevents app distributors from providing Android users ready access to competing app stores."
Were it not for Google's “anticompetitive” behavior, Epic said in its complaint, Android users “could freely download apps from developers’ websites, rather than through an app store, just as they might do on a personal computer.”
Technically, it is possible to download apps from outside of Google's Play Store, but Epic argued that for most people this is too cumbersome, requiring as many as 16 steps, for instance, to download Fortnite. And for those who try, Google sends “dire warnings that scare most consumers into abandoning the lengthy process.”
Google's lawyer, meanwhile, attacked Epic as a self-interested game maker trying to use the courts to save itself money while undermining an ecosystem that has spawned billions of Android smartphones to compete against Apple and its iPhone.