The antitrust trial between Epic Games and Google begins today, with the companies arguing over illegal fee hikes and anti-competitive rules.
The developers of Fortnite, Epic Games, will begin their jury trial today (Monday, November 6, 2023) with internet giant Google over antitrust claims about the Google Play Store’s payment system. Epic Games will be taking on this legal battle against Google in the UK and Australia. The Unreal Engine creators had a similar legal issue with Apple and the App Store back in 2021, with which they made similar claims. Seeking Alpha reports that CEO of Google parent Alphabet Sundar Pichai and Epic Games CEO Tim Sweeney are expected to testify.
The whole ordeal began back in 2020 when Epic Games introduced a new hotfix that would direct players to buy the in-game currency “V-Bucks” directly from Epic Games, which would mean avoiding the 30% cut Google takes through its handling of all in-game transactions on the Google Play Store. In retaliation for the changes in Fortnite, Google removed their game from Google Play Store. Then, Epic Games was quick to open an antitrust lawsuit, for which Google countersued back for breach of contract.
The main gripe that Epic Games is trying to justify is that Google’s current payment system and model create an anti-competitive market. And while Android users can install apps without using Google’s marketplace (unlike Apple’s iOS), Google Play is so dominant that it is not financially viable or profitable to do so. Google’s VP of Government Affairs and public policy, Wilson White, told Seeking Alpha: “[Epic’s] claims are baseless. Android enables developers to distribute through multiple app stores or directly to users through the web.”
Epic Games is not seeking any financial compensation but instead would like Google to change their practices. The gaming company had a similar legal battle with Apple in 2021, but the California court found that the Apple App Store did not violate antitrust laws. The judge ruled in Apple’s favour on nine out of ten counts. Epic Games’ only victory was a ruling that Apple should cease its anti-steering policies and allow developers to provide users with links to where they may make direct purchases.
No changes have yet been made to these links on the Apple App Store, and both parties have reached out to the Supreme Court to review the ruling. If the same judgment between Epic Games and Google were made, it could affect Apple and Google’s 15-30% commission charges on purchases made through their respective app stores. Additionally, Google is already facing another antitrust case from the Department of Justice over its alleged monopolistic practices in the search business.
