Alphabet
-owned Google has lost an antitrust case filed by Epic Games after a California federal jury decided it maintains a monopoly in its app store’s distribution and payments market.
Videogame maker Epic filed the lawsuit three years ago, saying Google used its position dominating the Android app distribution market to wring profit out of app developers.
Epic argued that Google thwarted competition in its lucrative app store, where it charged 15% to 30% on digital transactions done inside apps. Google argued that the partnerships it arranged helped Android phones better compete with rival
Apple.
The unanimous verdict came after three hours of deliberation following a four-week trial, the Associated Press reported.
Google’s Wilson White, vice president of government affairs and public policy, said in a statement that they plan to challenge the verdict.
“Android and Google Play provide more choice and openness than any other major mobile platform,” the statement said. “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. We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem.”
In a statement, Epic Games said: “Today’s verdict is a win for all app developers and consumers around the world. It proves that Google’s app store practices are illegal and they abuse their monopoly to extract exorbitant fees, stifle competition and reduce innovation.”
A U.S. District Court judge in California will decide whether Google has to allow payment and app distribution outside its own Google Play app store.
In its statement, Epic Games called for legislation and regulations that address Apple and Google “strangleholds” over smartphones, and noted legislation in progress in the U.K. and the European Union.
Write to Liz Moyer at [email protected]
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