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Google’s Play store wins lawsuit against Epic: What’s next?


Google has lost an antitrust lawsuit regarding its Android app store. A federal court jury has ruled that the company’s payments system was anticompetitive, hurting smartphone consumers and software developers.

This is a significant loss for Google’s technology empire but a win for Epic Games, the creator of the popular Fortnite video game, as well as the broader game developer community.

Here are some questions and answers about the verdict and what it means.

Why did Epic sue?

Epic filed the lawsuit three years ago, alleging that Google was abusing its power to protect its Play Store and its revenue by preventing competition. Google collects a commission of 15%-30% on digital transactions within apps, similar to Apple’s iPhone app store commission.

How did Google lose?

The jury reached its decision quickly, siding with Epic. Epic’s lawyer portrayed Google as using a “bribe and block” strategy to discourage competition against its Play Store for Android apps, and making it difficult for consumers to download apps from other outlets. Google’s warnings scare consumers away from trying to download apps from other stores. The court agreed with Epic that Google was using anticompetitive behavior to prevent access to competing app stores.

What happens next?

Following the verdict, Google sought to avoid a jury trial but had its request rejected by the judge. Now, the judge will determine what steps Google needs to take to stop its illegal behavior in the Play Store. Google will appeal the decision, but the uphill battle is expected since its rivals may focus on challenging the fees Google charges developers through its store.

What does the verdict mean for Google?

Depending on how the judge enforces the verdict, Google could potentially lose billions of dollars in annual profit generated from its Play Store commissions. However, its main source of revenue from digital advertising will not be directly affected. Google’s parent company, Alphabet Inc., did see a slight stock slip following the verdict.

Didn’t Apple win a similar case?

Although Apple prevailed in a similar case brought by Epic against the iPhone app store, the jury in the Play Store case decided differently. Even though Google allows Android apps to be downloaded from different stores, Apple prohibits this on the iPhone. The decision in the Apple case is currently under appeal at the U.S. Supreme Court.

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