In a momentous decision that could chip away at Google’s tight control over its Android app store, a federal jury said Monday night that Google’s app marketplace is an illegal monopoly.
The verdict in a years-long battle between Epic Games – maker of the hit video game “Fortnite” – and the technology giant marks a significant victory for critics of Google’s app store terms and practices. The jury found that Google’s app store practices violated US antitrust law, and that the search giant illegally operated a monopoly in the way it distributed and charged for Android apps.
Epic and Google have been battling for weeks in a closely watched federal trial over everything from the fees Google charges for in-app purchases to Google’s contract terms that restrict competing app stores on Android devices.
The jury’s decision could represent a crack in the armour of app store operators, who for years have successfully defended their platforms against monopoly allegations by consumers, app makers and other critics of large technology companies.
“Victory over Google,” said Epic Games CEO Tim Sweeney in a post on X. “After four weeks of detailed testimony, the California jury has ruled against the Google Play monopoly on all counts.”
Google’s response
In a statement, Google said it would appeal the landmark verdict, which could lead to sweeping changes to the company’s app store business.
“Android and Google Play offer more choice and openness than any other major mobile platform,” said Wilson White, vice president of government affairs and public policy at Google. “The trial made clear that we compete vigorously with Apple and its App Store, as well as app stores on Android devices and game consoles. We will continue to defend the Android business model and remain deeply committed to our users, partners and the broader Android ecosystem.”
With Monday’s ruling, a separate trial in the case is expected to begin in the new year on possible remedies for Google’s app store, which could seek to change the way Google collects its fees from developers or make it easier for Android devices to host third-party app stores.
For now, the outcome of the high-profile legal battle stands in contrast to a similar case brought by Epic against Apple over its App Store. After being largely defeated on its key claims in the lower courts, Epic has appealed its case against Apple to the US Supreme Court.
A long-simmering battle
Epic’s challenge to the app store operators followed years of criticism from app developers that Apple and Google imposed overly restrictive terms and exorbitant fees for the ability to appear in their app stores. Epic had admitted in both cases that it launched a deliberate campaign, known as Project Liberty, to violate the companies’ developer terms, specifically to force a legal showdown by recommending in 2020 that Fortnite players buy in-game currency from Epic’s website rather than through iOS or Android apps.
That recommendation led Apple and Google to remove Fortnite from their respective app stores, citing violations of app store policies, and triggered the legal battles.
Apple and Google have both maintained that their app store practices help ensure that software available through their platforms is safe and secure. In addition, Google has argued that the Android operating system, which it develops and licenses, allows users to download apps from any third-party source if they wish, while Apple restricts app installations to only those apps available from its proprietary app store.
Google has also accused Epic of trying to take advantage of the visibility and reach of the Google Play Store without contributing to the platform’s upkeep.
US lawmakers have proposed legislation to address some of the criticisms raised by app developers, but it has failed to move forward amid a barrage of criticism from Apple and Google.
On Monday, consumer advocates argued that the jury’s verdict was a major victory “against one of Google’s most profitable monopolies”.
“This is a message that justice can prevail in the fight against Big Tech’s outsized power over our lives,” said Katherine Van Dyck, senior staff attorney at the American Economic Liberties Project, a consumer group that advocates aggressive antitrust enforcement.
Monday’s ruling may be part of a much broader shift in the Internet economy, said Anil Dash, a longtime technology entrepreneur and commentator.
“App stores are opening up, walls between social media platforms are coming down as old networks fail, the headlong rush to AI is making all search engines worse, and the open web is more powerful than ever,” Dash wrote in a post on Threads. “We’re about to see the biggest reallocation of power on the internet in 20 years. Most users have never seen this kind of change.”