Match may have settled its antitrust lawsuit with Google last week, but Fortnite maker Epic Games is still set to go to trial with the tech giant today, November 6, in hopes of convincing a jury of that Google has anti-competitive behavior with respect to its Android. app store, Google Play and its commission structure. This case will differ slightly from Epic’s battle with Apple over the same issue because, this time, Epic cannot claim that there is no other way to load apps on Android devices, as it could with Apple, because Android does allow downloading of apps. . Although Epic will suggest that Google makes that process cumbersome, most of its arguments will focus on what it believes are anti-competitive agreements between Google and device manufacturers and developers.
The precedent on which the Epic case will be based is a Microsoft case in which the courts found that Microsoft had a monopoly on the operating system and abused it, making it difficult for users to download alternative browsers, such as Netscape, on Windows devices.
To defend its case, Epic plans to file lawsuits under Sections 1 and 2 of the US antitrust law, the Sherman Act, as well as California’s antitrust laws, the Cartwright Lawand the Unfair Competition Law. It will attempt to argue that Google restricts competition within two separate markets, including the distribution of apps to Android users and the market for payment processing solutions for content within Android apps.
Google argues that its commissions are not only tied to billing, but that it offers discounts for third-party billing options
Today, Google requires apps to use its own proprietary billing system and charges app developers a 15% to 30% commission on the sales it processes.
However, Google will counter Epic’s arguments by pointing out that it has implemented a new option for app developers called User Choice Billing, which Epic has refused to use. This program, still in pilot, is open to all developers selling apps in the 35 markets where it is now available, including the US, and reduces the standard commission. by 4% for businesses that choose to use their own payment processing solution. Spotify and Bumble were initial testers of the new system, first introduced in November 2022, and Match, as part of its settlement agreement, will now take advantage of this option as well.
Image credits: an example of Google’s user choice billing option in the Spotify app
Google will also argue that its commissions are not only tied to payment processing, but help it develop other features and controls to keep Android users safe and guide them in discovering new apps, as well as help fund the tools and services that developers need. to create and grow your applications. Google also helps developers reach a broader audience beyond mobile, with support for Android on all platforms, from tablets to TVs, cars and more. And it will point out that 99% of its developers qualify for a commission of 15% or less, based on their income.
The competitive landscape with other app stores and OEMs
The tech giant also plans to push back against Epic’s claims that it has no competition in the app store business. He will point out that the Play Store not only competes with Apple’s App Store, as the Ninth Circuit also accepted in the Apple case, but that Android also supports competitive app stores like Samsung’s Galaxy Store and Amazon’s Appstore.
Epic, however, will try to demonstrate that Google is making it difficult for alternative app stores to succeed and reach consumers, pointing out that 90% of apps are still downloaded through Google Play. And it will point out that Google bundles the Play Store with other Google apps that Android OEMs (original equipment manufacturers) must accept in order to use Android.
Epic will also mention “Anti-Fragmentation Agreements” (AFA) that prevent OEMs from modifying Android to allow frictionless downloading of apps outside of Google Play. Epic Games will specifically reference an agreement it entered into with OEM OnePlus to make Epic games available on its devices through the Epic Games app. But OnePlus had to cancel the deal out of fear that the deal would see it bypass the Google Play Store. The case will also examine an agreement between Google and Samsung that Epic says was designed to prevent the Galaxy Store from being a competitive threat and requiring Google Play Billing on apps distributed by Samsung.
Epic will argue that agreements with Google developers are anticompetitive
A second set of agreements that Epic will highlight are those between Google and Android app developers themselves. One such program, the “Project Hug” initiative, which is part of the Google Games Velocity program, will be cited as an example of how Google paid its competitors not to distribute their apps on Android outside of the Play Store, targeting those who they were at greater risk. Play wear and then approach them with a monetary offer. As an example, Epic will point to Activision Blizzard, owner of King.com and creator of Candy Crush and Call of Duty, as a developer that wanted to go down the path of opening its own app store. Google and Activision Blizzard then signed a three-year deal in January 2020, worth about $360 million, to keep the developer on Google Play, Epic will argue.
Google, however, will characterize this program as a way to incentivize developers to release their apps on Android at the same time they release them on iOS and plans to dispute Epic’s claims that it prevented developers from opening their own app stores.
Android allows download
Google will take note that, unlike Apple, it also allows you to download applications on Android devices, something that Epic takes advantage of today. You’ll notice that this process is streamlined and helps keep users safe. But Epic will claim that this process is too difficult for end users, with multiple steps involved and “scare screens” warning users about the security risks involved with downloading.
Epic will also suggest that Google hid elements from discovery by allowing executives and employees to have “off-the-record” chats, but Google will also counter this, saying it has provided the court with thousands of chat logs and millions of documents.
Ultimately, the tech giant will push the idea that this case is not about competition, but about money; That is, Epic Games wants to reach 2.5 billion Play Store users without having to pay.
“Android’s options and flexibility work well for consumers and developers of all sizes. “We look forward to presenting our case in court as we fight to keep our users safe from harm, partner with developers to grow their businesses, and keep the Android ecosystem thriving and healthy for everyone,” he says. a blog post from google by Wilson White, Vice President of Government Affairs and Public Policy.
Epic’s lawsuit originally involved Match and several US attorneys general, but Google reached an agreement with the latter last month and with Match last week. Epic will now fight the antitrust battle on his behalf. The lawsuit, held in the US District Court in the Northern District of California, will include testimony from several Google and Android executives, including CEO Sundar Pichai and Epic Games CEO Tim Sweeney, as well as from Apple, Netflix and other Android developers.
Google is also involved in another antitrust lawsuit with the Department of Justice over its alleged search monopoly. Meanwhile, Epic lost its antitrust battle with Apple and is now asking the Supreme Court to intervene.
