Google’s mobile app store maintains a monopoly in the market for distribution of programs and payments on its Android software, a federal jury in California decided, dealing a blow to the technology giant in a high-stakes antitrust battle with Epic Games Inc.
The internet giant’s Play store willfully wields monopoly power through the Alphabet Inc. unit’s anticompetitive conduct, jurors found Monday after deliberating for less than four hours following a nearly month-long trial in San Francisco. The ruling could potentially jeopardize billions of dollars of revenue generated by Google’s app store. Two years ago Epic largely lost a similar antitrust challenge to Apple over its app store.
US District Judge James Donato, who oversaw the trial, will decide whether Google must open the door for payment and app distribution methods outside its own app store following the verdict that Google Play policies are unlawful.
Google didn’t immediately respond to a request for comment. Its shares were down 0.3% in extended trading.
Tim Sweeney, chief executive officer of Fortnite maker Epic, hailed the ruling in a post on social network "X."
Epic sued Google three years ago, claiming the tech company monopolized the Android app distribution market for more than a decade by striking side deals with rivals and using its resources to thwart competition.Victory over Google! After 4 weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts. The Court’s work on remedies will start in January. Thanks for everyone’s support and faith! Free Fortnite! https://t.co/ITm4YBHCus
— Tim Sweeney (@TimSweeneyEpic) December 12, 2023
In its defense, Google contended that its partnerships help phones that run on the Android operating system better compete against smartphone market rival Apple Inc.’s iPhone.
Epic was the only stakeholder to challenge Alphabet at trial after the Mountain View, California-based company recently reached settlements with consumers, state attorneys general and Match Group Inc., all of whom had targeted Google Play policies in complaints. Epic largely lost a similar antitrust challenge two years ago to Apple over its app store.
The trial featured testimony from both Sweeney and Alphabet CEO Sundar Pichai, along with a handful of high-ranking executives from Google and several antitrust law experts.
Nine jurors, three women and six men, were shown numerous documents as evidence, including confidential internal Google email communications and presentations, which revealed the inner workings of its efforts to build out Google Play and its Android mobile operating system business.
Alphabet had countersued Epic, alleging the game maker breached its contract and acted in bad faith when it tried to set up its own app store in 2020 as an end-run around the Google Play billing system.
After testimony by Epic executives at trial admitting that they tried to sidestep the Play store, Donato ordered jurors to skip ruling on Google’s counterclaims.
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