Epic Games, the publisher of Fortnite, and Google are set to engage in an antitrust trial in federal court on November 6, similar to the one involving Apple. Epic alleges that Google has engaged in anti-competitive practices within the Android app market. These practices include charging fees for access to the Google Play Store, compelling app developers to use its proprietary payment system, and suppressing competition. This lawsuit adds to Google’s existing antitrust challenges and is considered one of the most significant tech antitrust trials since the US government’s case against Microsoft in the 1990s. Here’s a comprehensive overview of the Google vs. Epic case.
What is the case
In 2020, Epic Games initiated legal proceedings against Google and Apple, alleging that both companies impose fees, referred to as the ‘Google Tax’ and ‘Apple Tax,’ on developers in exchange for access to their app stores for conducting transactions. Epic also contended that these companies prohibit developers from utilizing their own payment systems.
Epic Games previously engaged in a legal dispute with Apple, but this will mark the first instance where Google is being taken to court over this issue.
Why does Epic wants separate payment system
Epic Games publishes Fortnite, a free-to-play game in which players use real money for in-app purchases like V-Bucks (the in-game currency), which is the primary source of revenue for Fortnite. These payments are processed through Google’s payment systems, and Google retains a commission of up to 30% from each transaction.
Epic argued that this arrangement should not be mandatory and that they should be allowed to offer users an alternative payment option, thus avoiding the need to pay fees to Google (or Apple). Subsequently, Epic announced its decision to circumvent Apple and Google’s app store fees by implementing an alternative payment method, a move that violated the policies of both companies. In response, both Apple and Google removed the game from their respective app stores.
Apple’s legal battle
The lawsuit against Apple proceeded to court in 2021, while the one against Google faced multiple delays. The court’s decision in the Apple case largely favored Apple.
Epic’s ‘partners’
Until recently, Epic was accompanied by Match Group, the parent company of Tinder, in this legal battle. However, a recent out-of-court settlement has left Epic standing alone in this dispute.
Why is the case important?
Google has faced analogous legal challenges in various regions, including India. Google has consistently contended that the fees it imposes play a crucial role in maintaining the security of Android phones. According to Google, permitting third-party apps or sideloading on Android would compromise fundamental safeguards, potentially diminishing Android’s ability to compete with the iPhone.
In response to these concerns, Google has introduced certain rule changes in select markets, reducing the fees through the ‘User Choice Billing’ program, which was launched in 2022, as a measure to address these issues.
Epic vs Google case witnesses
Anticipated witnesses in the case include Google’s CEO Sundar Pichai and Epic’s CEO Tim Sweeney. Google has indicated that Hiroshi Lockheimer, who oversees Android, Chrome, and Chrome OS, along with representatives from Apple, Netflix, Motorola, and AT&T, may also be called upon to testify.
