by A district court in California found that Google created a monopoly with its Google Play app store.
This is the result of a long-running landmark case Epic Games against Google, which began in 2020.
Court documents filed on December 11 show that the jury found against Google on all counts, in favor of Epic Games’ complaints.
The case, and its companion suit filed against Apple in 2020, is linked to why Epic Games’ Fortnite is not available from Google Play on Android or the App Store on iPhones.
But what is the question?
Why did Epic Games sue Google?
Epic Games has taken issue with how the Android and iPhone app ecosystems work, primarily the way platform holders take a 30% cut of payments made through phone apps and games.
Fortnite was removed from the App Store, and later from Google Play, in 2020 after Epic Games implemented its own payments system, bypassing Apple’s own payments system – thereby avoiding Apple’s 30% cut.
The court case found that Google engaged in “anti-competitive behavior” in its “Android app distribution market” and in its “in-app billing services”, and that Google illegally linked the use of the Google Play Store with the use of Google Play Billing”.
Epic Games boss Tim Sweeney celebrated the ruling.
“Victory over Google! After 4 weeks of detailed court testimony, a California jury found against the Google Play monopoly on all counts. The Court’s work on solutions will begin in January,” Sweeney posted on X, formerly known as Twitter.
What form these “cures” will take remains to be seen.
Why is this so important to Epic Games? V-Bucks. This is the currency used in Fortnite. And because Fortnite is a free-to-play game, this currency is how the game makes money. It is used to purchase custom skins and items within the game.
When Apple or Google take 30% of in-app purchases, they take 30% of a free-to-play game’s revenue. Fortnite is estimated to have made up to $26 billion since the game launched in 2017, across all platforms.
Epic games against Apple
The complicating factor here is the comparable Epic Games v. Apple antitrust case, which found overwhelmingly in Apple’s favor. It was decided in September 2021 and upheld after an appeal which ended in April 2023.
It could be said that there is a stronger argument for monopolistic practices in the Apple App Store than in Google Play. While Android owners can install third-party app stores on their phones and tablets, including Epic Games itself, this cannot be done on an iPhone unless the device is rooted or hacked.
However, as part of the appeals process, US courts have ruled that Apple will have to implement third-party payment options, giving developers ways to circumvent Apple’s fees.
It currently charges 30% for publishers making more than $1 million a year, and 15% for smaller developers. This was part of its App Store Small Business Program, announced in November 2020. Google followed suit in July 2021, with 15% lower fees under $1 million.
Both Epic Games and Apple appealed these lower court rulings, again. Epic Games asked the Supreme Court to address the case, and Apple asked the Supreme Court to void the order to implement third-party payment systems.
What this means for the industry
The situation is still up in the air, but the impact on the wider industry could be dramatic, and spread out beyond just mobile platforms.
Microsoft and Sony take a 30% commission for purchases made on the Xbox and Playstation platforms. Could this also be under threat?
Console makers often sell consoles at a loss, safe in the knowledge that profits can be made through these software fees, and revenue from first-party developers.
As early as November 2023, a class action lawsuit was brought against Sony, over claims that its PlayStation Store fees are unfairly high. Sony also stopped selling digital games through third-party retailers in April 2019, giving it more control over PlayStation software pricing.
Steam Leadership PC gaming platform also charges 30% commission.
Epic Games runs its own game store, for PC and Mac, and charges a lower 12% commission. In October, it also announced its Now on Epic program, where developers who have released games on other platforms can bring them to Epic Games and receive 100% of the revenue for the first six months.
Similarly, Microsoft has dropped its PC Store commission to 12% in 2021, according to Epic Games.
What do the Microsoft Store and Epic Games have in common? They are both desperate for more market share, and they are not market leaders.
When will Fortnite come to Google Play and the App Store?
If you think this legal kerfuffle is all a bunch of big tech and gaming companies yelling at each other, you might be more interested when Fortnite returns to iPhones and Google Play.
It is unlikely that these cases are actually solved. And this probably depends on what the Supreme Court does next, in response to the case of Epic Games against Apple.
However, if you use an Android phone, you can download the Epic Games launcher via the Fortnite website.
The Standard has contacted Google for comment.
