Google will defend its Play Store digital payment processing system in a San Francisco federal court as it confronts the largest US antitrust lawsuit in 25 years.
Epic Games, the developer of Fortnite, sued Google. According to a report published by ABC News, the main focus of the trial will be on whether Google has been illegally increasing costs for both developers and customers via its digital payment processing system in the Play Store, which distributes applications for Android-based phones. This legal issue that the tech giant is facing can be compared to testing conducted in 2021 on Apple's iPhone app store.
Apple won that previous trial, for the most part, but there was one major disagreement. It was decided by an appeals court and a federal judge that Apple should let applications provide links to other payment methods. A change of this kind would jeopardize the 15% to 30% fees that Google and Apple charge for digital sales made via mobile applications. Epic is contesting many facets of the lawsuit it lost, while Apple is appealing this ruling to the US Supreme Court.
Epic Targeting Google's Commission System
Even though Android OS already allows rival app stores, like Samsung's, to sell games compatible with the operating system, Epic Games has now set its eyes on Google's commission system. Epic claims that despite Google having spent hundreds of millions of dollars to restrict competition, the company still has a firm grip over the Android app ecosystem and the related payment mechanism.
Google's main contention in this lawsuit is that these charges are a reasonable expense of doing business. According to the tech firm, its prices are fair and necessary to maintain a vibrant marketplace that developers rely on to engage with consumers.
In an emphasis on the company's position, Google Vice President of Public Policy and Government Affairs Wilson White said in a blog post, as quoted by CNBC, "The truth is that Epic simply wants all the benefits that Android and Google Play provide without having to pay for them."
Google argues that its commissions are a sort of remuneration for the substantial investment it makes in the Play Store, which is a similar tactic to Apple's in its antitrust lawsuit. Additionally, the business claims that these measures protect the security of the tens of millions of American consumers who download programs for Android-powered mobile devices.
Google's Other Legal Issues
In this litigation, Google was initially expected to confront many legal opponents. Nonetheless, Apple settled a lawsuit with Match Group, the parent firm of Tinder and other online dating services, in September after state attorneys general filed complaints about the Play Store. Google withdrew its proposal for a jury trial in favor of a judge-led procedure after the Match Group deal, but Judge Donato rejected this motion.
A $40 million payment and the implementation of Google's "user choice billing" scheme are part of the settlement with Match Group, per AP News. During Google's trial with Epic Games, more information on the settlement with state attorneys general is anticipated to come to light.
