Epic Games Wins Shocking Upset In Google Monopoly Trial
Epic Games sued Google over anti-competitive practices and won. A jury in the in the Epic v. Google case delivered a swift verdict, concluding that the giant tech firm was operating an illegal monopoly on Android devices in the form of the Google Play storefront.
The verdict included findings that Google not only abused the ties between its app store and billing services to harm companies like Epic Games, but that its distribution agreements with video game publishers like Activision, Ubisoft, Square Enix, and others were monopolistic as well. Judge James Donato still has to decide on which remedies the court will apply to rectify the problems, and Google has already announced it will appeal the outcome.
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Epic’s win in the Google case, however, could have major ripple effects throughout the mobile gaming space and beyond. One big benefector could be Microsoft, whose $69 billion acquisition of Activision Blizzard appeared to be banking on a breakup of smartphone app store monopolies. “We have to break that duopoly of only two storefronts available on the major [mobile] platforms,” Microsoft Gaming CEO, Phil Spencer, said last year.
The tech giant has hinted that it might leverage mobile hits like Candy Crush, Call of Duty, and Diablo Immortals to open its own game store on portable devices. Microsoft CEO Satya Nadella recently said that giving up on the mobile market was one of the company’s biggest mistakes. Doing so would allow the company to collect 100 percent of the revenue from lucrative in-game microtransactions and ad deals, a market that dwarfs the traditional gaming console and PC markets.
EU regulators have also been pressuring Apple and Google to open up their mobile platforms and allow competitors to set up shop on them. Regulations demanding as much go into effect in 2024, and though they only apply to European countries, they could spur other countries, like the U.S., to adopt similar requirements.
“Victory over Google!” Epic CEO Tim Sweeney tweeted yesterday. “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!”
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