In a significant ruling, a federal court jury has determined that Google’s Android app store was shielded by anticompetitive barriers, impacting both smartphone consumers and software developers. This verdict, reached after just three hours of deliberation following a four-week trial, deals a blow to a foundational element of Google’s technological dominance.
Epic Games, the creator of the popular Fortnite video game, initiated the lawsuit against Google three years ago, alleging the abuse of power to protect Google’s Play Store from competition. Similar to Apple, Google collects a commission ranging from 15 to 30 percent on digital transactions within apps.
While Apple emerged victorious in a similar case against its iPhone app store, the nine-person jury in the Google Play store case saw things differently. Despite Google technically allowing Android apps to be downloaded from different stores, a feature Apple prohibits, the jury concluded that Google had maintained a monopoly through anticompetitive practices.
Google sought to avoid a jury determination before the trial but was unsuccessful. The court will now determine the actions Google must take to address its anticompetitive behavior within the Play Store, with hearings scheduled for January.
Epic CEO Tim Sweeney expressed satisfaction with the verdict, declaring “Victory over Google!” on social media. The court’s decision was hailed by Epic as “a win for all app developers and consumers around the world.” Google plans to appeal the verdict, emphasizing the openness and choices offered by Android and Google Play.
The potential financial impact on Google could be significant, as it may lose billions in annual profits generated from Play Store commissions. However, Google’s primary revenue source from digital advertising tied to its search engine and other services is not expected to be directly affected.
The trial featured dueling arguments between Epic’s portrayal of Google as a ruthless bully and Google’s assertion that it needs commissions to recoup the significant investment in Android software. The case illuminated Google’s practices, including payments to discourage rival app stores and warning screens for alternative app downloads. Another major antitrust trial in Washington may further challenge Google’s empire, focusing on its relationship with Apple in online search.
Joseph Gutierrez holds Master’s degree in Business Administration. As an avid day trader, he is a master of technical analysis and writes tirelessly on how stocks are trading. Joseph has extensive knowledge in technical analysis & news writing. He delivers news reports regarding Market category.
