Epic Games Proposes Reforms to Google App Store After Antitrust Win

Epic Games, the creator of “Fortnite,” has urged a federal judge in California to compel Google to increase competition within its Play Store following a jury’s determination that Google had misused its authority as a gatekeeper for Android apps. In a court filing submitted to U.S. District Judge James Donato in San Francisco, Epic proposed measures to grant users more flexibility in app downloads and limit Google’s ability to restrict preloading of rival app stores on devices.

Epic emphasized its desire to bring its Epic Games Store to Android without impediments and advocated for consumers and developers to have more autonomy over in-app purchases, free from anti-competitive practices. In response, Google contended that Epic seeks to reap the benefits of Google Play without shouldering the associated costs, asserting that Android operates within a fiercely competitive landscape.

Judge Donato presided over a high-profile antitrust trial that culminated in a jury finding against Google in December. Although the judge isn’t obligated to adopt Epic’s proposal, the filing sets the stage for the next pivotal phase in Google’s regulation of app developers and users. This filing marks a significant development in the ongoing legal battle between Epic Games and Google, highlighting the broader implications for competition and consumer choice within the mobile app ecosystem.The jury’s verdict in December concluded that Google had hindered developers’ ability to distribute their apps freely beyond the Play Store and maintained stringent control over in-app payment transactions, imposing a 30% commission on numerous apps and purchases.

Google has staunchly defended its app store policies, reiterating its dedication to maintaining an open mobile platform and vehemently denying any wrongdoing. However, Epic CEO Tim Sweeney contends that Google’s previous settlement did not sufficiently address the competition concerns within the Play Store. Sweeney argues that the settlement fell short in restoring competition within the marketplace and failed to address issues related to app distribution, in-app purchase restrictions, and the imposition of a standard 30% commission on transactions. This ongoing dispute underscores the broader tensions between app developers and tech giants regarding market dominance, consumer choice, and fair competition in the digital ecosystem.

Epic Games, headquartered in North Carolina, functions as a privately held entity, with a notable 40% ownership stake held by Tencent, a prominent Chinese multinational conglomerate. This strategic investment from Tencent underscores its interest in the gaming industry and its confidence in Epic Games’ potential for growth and success.

Moreover, as of February, Epic Games also counts Walt Disney among its stakeholders, with the entertainment giant holding an approximate 9% ownership stake in the company. This investment from Disney reflects the company’s recognition of the significance of the gaming market and its desire to diversify its portfolio by aligning with established players in the industry.The combined support from Tencent and Walt Disney positions Epic Games favorably in terms of financial stability and strategic partnerships, enabling the company to pursue its ambitious goals and expand its presence in the gaming ecosystem.

In a separate development, Google agreed in December to a $700 million settlement to resolve state and consumer allegations regarding Play Store restrictions. The company announced plans to expand options for app and game developers to offer consumers alternative billing methods for in-app purchases. Despite these actions, Google intends to challenge both the December antitrust jury verdict and any subsequent reforms mandated by Judge Donato, potentially prolonging the legal battle for years.