USALife.info / NEWS / 2023 / 12 / 11 / JURY TO DECIDE: GOOGLE'S ANTITRUST TRIAL TARGETS ANDROID APP STORE PAYMENTS
 NEWS   TOP   TAGS   ARCHIVE   TODAY   ES 

Jury to Decide: Google's Antitrust Trial Targets Android App Store Payments

20:56 11.12.2023

A federal court jury has delivered a unanimous verdict in a trial against Google, ruling that the tech giant's Android app store has been protected by anticompetitive barriers that have harmed smartphone consumers and software developers. The trial, which lasted four weeks, centered around Google's payment system within its Play Store, where users download and install apps for Android-powered smartphones. The verdict comes as a blow to Google, as it challenges a major pillar of its technology empire.

Epic Games, the creator of the popular Fortnite video game, filed the lawsuit against Google three years ago, alleging that the company has been abusing its power to shield its Play Store from competition. Like Apple's iPhone app store, Google collects a commission ranging from 15% to 30% on digital transactions completed within apps. This payment system generates billions of dollars in profit for the company annually.

Google had sought to avoid having a jury determine the outcome of the trial, but its request was rejected by U.S. District Judge James Donato. Now, it will be up to Donato to decide what steps Google will need to take to address the anticompetitive behavior identified in the Play Store. Hearings on this issue are expected to take place in the second week of January.

In response to the verdict, Google stated that it will challenge the decision, emphasizing that Android and Google Play offer more choice and openness than any other major mobile platform. Wilson White, Google's vice president of government affairs and public policy, asserted that the trial confirmed the company's strong competition with Apple and its App Store, as well as other app stores on Android devices and gaming consoles. White also stated that Google remains committed to defending the Android business model and serving its users, partners, and the broader Android ecosystem.

Epic Games CEO Tim Sweeney expressed his satisfaction with the verdict, breaking into a wide grin and thanking the Google attorney for his professional attitude during the proceedings. Epic Games had previously filed a similar lawsuit against Apple, which resulted in a trial in 2021. However, in that case, the verdict was decided by a federal judge. Epic lost on all its key claims against Apple.

The outcome of the Google trial will likely depend on how the smartphone app market is defined. Epic has argued that Google's Play Store constitutes a de facto monopoly that drives up prices for consumers and discourages app makers from creating new products. On the other hand, Google has presented a vision of a broad and highly competitive market that includes Apple's iPhone app store and alternative Android app stores. The cozy relationship between Google and Apple has also come under scrutiny, with evidence revealing that Google paid $26.3 billion in 2021 to be the default search engine on Apple devices.

The trial against Google in San Francisco parallels another major antitrust trial in Washington, where the U.S. Justice Department has accused Google of abusing its dominance in the online search market. Both trials highlight the significant role that Google plays in the digital landscape and the need to address competition concerns within the industry.

/ Monday, December 11, 2023, 8:56 PM /

themes:  San Francisco  California  Washington



27/04/2024    info@usalife.info
All rights to the materials belong to the sources indicated under the heading of each news and their authors.
RSS