Google CEO Sundar Pichai and Epic Games CEO Tim Sweeney
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Google lost an antitrust case against Fortnite owner Epic Games.Now, a judge will decide what Google must do to get rid of its monopoly. Epic Games’ CEO told the Financial Times he’s worried Google will continue with business as usual.
Epic Games CEO Tim Sweeney is worried that Google won’t have to get rid of its high fees following a landmark antitrust ruling that found the tech giant engaged in monopolistic practices.
Epic Games, the company that owns Fortnite, sued Google in 2020 after the Android developer booted Fortnite from its Google Play Store. At the time, Epic Games charged users for in-game app purchases directly to avoid the 15 to 30% commission that Google collects. Google made it a requirement for apps offered on the Play Store to pay the fees in 2020 after companies like Spotify and Netflix tried to circumvent them, The New York Times reported.
The lawsuit accused Google of using various tactics to prevent “app distributors from providing Android users ready access to competing app stores.” For example, although it was possible to circumvent the Play Store, Epic Games argued that it was too challenging for the average consumer. Epic also claimed that Google paid developers millions to keep their games on the Play Store to discourage competition.
On Monday, a jury sided with Epic Games and a San Francisco federal court will decide in January how Google will alter how it does business. The decision could cost the company billions, depending on the remedies. Experts told Yahoo Finance one of the remedies the judge could order is making Google Play Store offer alternates to Google Play billing.
In an interview published Saturday, Sweeney told the Financial Times following the ruling that Google may offer solutions that don’t actually result in less competition and allow them to continue collecting high fees.
Sweeney told the Financial Times he feared Google could freely allow different payment systems on Android, but charge developers who opt for alternate systems high fees to use the Play Store. If this happens, he said, it may push developers back to relying on Google’s payment processing system. The judge in the case already indicated that he would not change Google’s ability to set their own fees for developers, Yahoo Finance reported.
“My gravest concern in all of this is Google really genuinely thinks that they are going to get away with continuing their scheme,” Sweeney told the Financial Times.
Sweeney told FT that Epic Games, which now operates its own storefront — Epic Games Store for Mac and Windows — knows that Google can charge developers much less.
Following the Monday ruling, Epic Games celebrated the win, writing that the case proved “Google’s app store practices are illegal and they abuse their monopoly to extract exorbitant fees, stifle competition, and reduce innovation.”
Google disagreed, saying in a statement to Business Insider that it was looking to appeal the verdict.
“We plan to challenge the verdict. Android and Google Play provide more choice and openness than any other major mobile platform,” Wilson White, Google’s VP of Government Affairs & Public Policy, 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.”
Google did not immediately respond to a request for comment from Business Insider sent outside regular business hours.