Technology
Monday, November 6th, 2023 2:55 pm EDT
Key Points
- Google is facing its second antitrust trial in two months, this time defending its Android Play Store against claims made by Epic Games. The trial revolves around Google’s treatment of third-party mobile developers, with allegations of unfair revenue cuts and obstructed communication for app creators.
- An Epic victory in this trial could result in changes to how Google operates its Android platform, potentially reducing the 15% to 30% fee charged on digital goods and services purchased within apps. It could also allow Epic to have its store pre-installed on devices, providing users with an alternative to the Google Play Store.
- The article also highlights the ongoing antitrust cases against Google, including the Department of Justice (DOJ) case focused on exclusive agreements with mobile phone manufacturers and browser makers and a separate DOJ antitrust trial scheduled to begin in Virginia, focusing on Google’s online advertising business. The key difference in the Epic suit against Google is that Google allows “sideloading,” the ability to install software from the web, which Apple forbids, and Epic plans to argue that Google’s dominant market position restricts access to apps. Google, on the other hand, maintains that its fees are reasonable and necessary to run a popular marketplace for developers.
Google is facing its second antitrust trial in two months, defending its Android Play Store against claims made by Epic Games. The trial, starting on Monday, focuses on Google’s treatment of third-party mobile developers, with allegations of unfair revenue cuts from in-app payments and obstacles for app creators to communicate with customers. An Epic victory could force Google to make changes to Android and potentially have the Epic store pre-installed on devices, providing an alternative to the Google Play Store.
The dispute began in August 2020 when Epic allowed direct billing for in-app purchases in its game Fortnite, leading to its removal from Google and Apple’s app stores. Epic sued both companies, seeking the ability to install the Epic store on smartphones and the right to email customers directly.
In addition to the Epic trial, Google is also dealing with a Department of Justice (DOJ) monopoly case that went to trial in September, focusing on exclusive agreements with mobile phone manufacturers and browser makers. Another DOJ antitrust trial is scheduled for early next year, centered on Google’s online advertising business.
Unlike Apple, Google allows sideloading, which Epic argues Google abuses, making it difficult for consumers to access apps. Epic points to Google’s contracts with handset makers and app developers that restrict alternative app stores, potentially violating competition laws.
Google’s defense centers on arguing that it charges reasonable fees necessary to run a popular marketplace for developers. Google claims its fees are among the lowest in the industry, with 99% of developers charged 15% or less for selling digital content.
Google will closely watch the outcome of Epic’s litigation against Apple for guidance. Witnesses expected to testify in the trial include Google CEO Sundar Pichai, Android executives, and representatives from Google partners like Apple and Netflix.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/06/google-set-for-second-antitrust-trial-in-two-months-as-it-faces-epic.html
