Epic Games, the company behind Fortnite, is taking Google to court on November 6, 2023, accusing the tech giant of running an illegal monopoly with its mobile app store. This case might feel like déjà vu, given Epic’s prior legal tussle with Apple. But here’s why this legal showdown with Google matters.
Epic Games bypassed Google and Apple’s app store fees in 2020, leading to a legal showdown. The case against Apple has already been heard, with a mixed outcome. But the Google trial was repeatedly delayed and is now finally underway.
The trial’s verdict could have significant implications for Google’s app store. Epic wants to break Google’s alleged monopoly, eliminating the “Google Tax” for developers and consumers. However, Google argues that such a win could compromise Android security and its ability to compete with the iPhone.
Epic claims Google restricts developers and users from using alternative app stores and payment methods, creating an illegal monopoly. The trial hinges on defining the relevant market, which could favour Google or Epic. Google’s higher transaction fees compared to traditional payment methods may be scrutinized. Epic believes Google should not charge a fee if developers use their payment systems.
Epic’s prior case against Apple resulted in mixed outcomes, with more transparency regarding payment methods. However, the Google trial has unique elements, including being a jury trial. A jury, not a judge, will decide the outcome, adding unpredictability to the case. While other parties settled with Google, Epic is determined to seek a verdict, primarily aiming to eliminate the “Google Tax”.
Epic’s determination to eliminate the “Google Tax” leaves little room for settlement, but a proposed settlement framework might provide a path to resolution. Both Google and Epic are embroiled in allegations of questionable practices, from Google’s “Project Hug” to Epic’s premeditated payment system bypass. High-profile witnesses, including Google’s and Epic’s CEOs, are expected to testify.
The trial is likely to involve claims of hypocrisy from both sides as they defend their positions. The trial is expected to last roughly five weeks, with a verdict anticipated before the December holiday. The Epic vs. Google trial promises to reshape the tech industry’s app store and payment landscape, making it a closely-watched legal spectacle with implications for regulators, developers, and consumers.
