Epic Games, the creator of the immensely popular game "Fortnite," initiates a legal battle against Google in federal court today. This high-profile antitrust showdown has the potential to redefine the way Android users access apps and make payments for in-app content.
Epic's lawsuit, filed in the US District Court in Northern California, specifically targets the Google Play Store. The focus is on Google's charges for in-app subscriptions and individual transactions, as well as other policies that app developers, including Epic, claim have allowed Google to unfairly dominate the app distribution market.
The legal dispute comes after a lengthy discussion regarding whether app store operators like Google and Apple promote a fair and competitive environment for app development. Both companies defend their app stores, claiming that they generate significant revenue for small businesses and guarantee security oversight for Android and iOS users, thanks to the involvement of tech giants.
During the trial, the jury may have the opportunity to hear testimonies from notable figures on both sides, including Sundar Pichai, the CEO of Google, and Tim Sweeney, the CEO of Epic.
The court battle originated in 2020 when Epic initiated Project Liberty, aiming to bypass the app store terms of Apple and Google. This action compelled a collision with the tech giants.
Epic proceeded to update the Fortnite app, urging users to make in-app purchases directly from their own website, disregarding Apple and Google's in-app payment systems. This strategy led to a violation of the developer terms of the app stores.
As a result, both app stores removed the Fortnite app from their platforms, preventing Apple users from playing the game on iOS devices. Epics case against Apple might undergo review by the Supreme Court in the near future. However, Fortnite can still be accessed on Android devices via various channels that are not affiliated with Google. In the meantime, Sweeney has accused Google of violating US antitrust law by exerting control, monitoring, and imposing fees on transactions between users and developers.
Google contends that Epic's motive is to gain access to the Play Store's extensive user base, which spans 2.5 billion individuals worldwide, without incurring any costs to support the platform. Furthermore, Google argues that a ruling in favor of Epic could potentially hinder Google's ability to provide a competitive Android alternative to Apple's iOS. Wilson White, Google's Vice President of Public Policy and Government Affairs, emphasized the importance of demonstrating to the jury how Android has fostered greater choice, flexibility, and openness compared to other platforms. He asserted that Epic has already benefitted from these advantages and, as a result, their baseless claims should be dismissed.
Google managed to reduce the number of plaintiffs it would face in court from a diverse group, which included state attorneys general, individual consumers, and Match Group, the owner of popular dating apps such as Tinder, Hinge, and Match. As a result, Epic will now be the only party going up against Google in court.