Federal Jury Rules Against Google: Anticompetitive Practices Damaging to Consumers and Developers

a federal jury unanimously found that Google’s Android app store, the Play Store, has been shielded by anticompetitive barriers that harm both smartphone owners and software developers. The verdict dealt a significant blow to the tech giant following a four-week trial that focused on the lucrative payment system within the Play Store.

The nine-person jury deliberated for three hours before reaching the unanimous verdict, which Epic Games, the developer of the popular video game Fortnite, hailed as a victory for app developers and consumers worldwide. The lawsuit against Google was filed nearly three years ago by Epic Games, accusing Google of illegal practices and abusing its monopoly to extract exorbitant fees, stifle competition, and reduce innovation.

Epic Games released a statement saying, “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.”

The lawsuit alleges that Google has established “contractual and technological barriers” that eliminate competing ways of distributing apps to Android users, enabling the company to maintain a monopoly over the market by restricting consumer choice and competition in mobile app distribution.

Google collects a commission ranging from 15% to 30% on digital transactions completed within applications on the Play Store. Similar to Google, Apple also collects a commission on transactions within its iPhone app store. However, in 2021, Apple prevailed in a similar case brought by Epic Games, a decision that is currently under appeal in the U.S. Supreme Court.

Despite Google allowing Android apps to be downloaded from different stores, a practice prohibited by Apple on iPhones, the jury reached a different conclusion from the federal judge in the Apple lawsuit.

Before the trial began, Google attempted to avoid a jury decision, but U.S. District Judge James Donato rejected the request. The same judge will now determine the steps Google needs to take to rectify its illegal behavior in the Play Store, with hearings scheduled for the second week of January.

Google has expressed its intent to challenge the verdict, emphasizing that the Play Store and Android provide more choices and openness than any other major mobile platform. Wilson White, VP of Government Affairs & Public Policy at Google, stated, “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.”