Federal jury rules against Google in Epic Games anticompetition lawsuit
Google plans to challenge the verdict
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Google’s Android app store, according to a decision from a federal jury on Monday, has been protected by anticompetitive barriers which damage smartphone owners and software developers, dealing a major blow to the technology empire.
The nine-person jury reached a unanimous verdict after three hours of deliberation, which followed a four-week trial on the lucrative payment system within Google’s Play Store.
The Google Play Store is where hundreds of millions of Android smartphone users go to download and install apps.
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MOUNTAIN VIEW, CA - MAY 15: Google headquarters is seen in Mountain View, California, United States, on May 15, 2023. (Photo by Tayfun Coskun/Anadolu Agency via Getty Images / Getty Images)
The developer of the popular video game Fortnite, Epic Games, filed a lawsuit against Google nearly three years ago based on shielding its store from competition.
"Today’s verdict is a win for all app developers and consumers around the world," Epic Games said after the decision. "It proves that Google’s app store practices are illegal and they abuse their monopoly to extract exorbitant fees, stifle competition and reduce innovation."
In its suit against Google, Epic said it is bringing "claims under Sections 1 and 2 of the Sherman Act and under California law to end Google's unlawful monopolization and anticompetitive restraints."
Epic alleges that Google has created "contractual and technological barriers that foreclose competing ways of distributing apps to Android users" which allows the company to maintain a monopoly over the market by eliminating "consumer choice and competition in mobile app distribution."
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MAY 09: A Google sign is seen in Munich, Germany. (Photo by Jeremy Moeller/Getty Images | Photo Illustration by Igor Golovniov/SOPA Images/LightRocket / Getty Images)
Google collects a commission on digital transactions completed within applications, which ranges from 15% to 30%.
Similarly, Apple also collects a commission on its iPhone app store and in 2021, the company prevailed in a similar case brought against it by Epic. The difference was a federal judge made the ruling, which is now under appeal in the U.S. Supreme Court.
The jury saw things differently from the federal judge in the Apple lawsuit, despite Google allowing Android apps to be downloaded from different stores – something prohibited by Apple on iPhones.
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In this photo illustration, Epic Games logo of a video game and software developer is seen on a smartphone screen and in the background. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images / Getty Images)
Before the trial began, Google attempted to avoid having a jury decide the fate of the trial, though U.S. District Judge James Donato rejected the request.
The same judge will determine what Google will need to do to unwind its illegal behavior in the Play Store, and indicated he will hold hearings on the matter during the second week of January.
Google told Fox News Digital it plans to challenge the verdict, as the Play Store and Android provide more choices and openness than any other major mobile platform.
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"The trial made clear that we compete fiercely with Apple and its App Store, as well as app stores on Android devices and gaming consoles," Wilson White, VP, Government Affairs & Public Policy said. "We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem."
The Associated Press contributed to this report.