Epic Games, the maker of the popular video game Fortnite, is suing Google, alleging that the company is abusing its monopoly power over app distribution on Android devices.
Key Highlights:
- Epic Games is suing Google, alleging that the company is abusing its monopoly power over app distribution on Android devices.
- The lawsuit, filed in federal court in California, focuses on Google’s requirement that all apps distributed through the Google Play Store must use its own in-app payment system.
- Epic argues that this requirement forces developers to pay Google a 30% cut of all in-app purchases, which is unfairly high.
- The company is asking the court to order Google to change its practices and allow developers to use their own payment systems.
The lawsuit, filed in federal court in California, focuses on Google’s requirement that all apps distributed through the Google Play Store must use its own in-app payment system. Epic argues that this requirement forces developers to pay Google a 30% cut of all in-app purchases, which is unfairly high.
“Google has engaged in anticompetitive conduct in the mobile app marketplace, including tying its app store to its payment processing services and imposing a 30% tax on all in-app purchases,” the lawsuit states. “These practices harm competition, stifle innovation, and increase costs for consumers.”
Epic’s lawsuit comes as a growing number of companies are challenging the power of Google and Apple, which together control the vast majority of the app market. Last year, Spotify filed a similar lawsuit against Apple, and a number of other companies, including Match Group and Tile, have also voiced concerns about the tech giants’ app store practices.
Google has defended its practices, arguing that they are necessary to protect consumers and maintain a high-quality app store. The company has also said that its 30% cut of in-app purchases is in line with industry standards.
The outcome of Epic’s lawsuit could have a significant impact on the app market. If Epic wins, it could force Google to change its practices, which could make it easier for developers to distribute their apps and could lead to lower prices for consumers.
In addition to the lawsuit, Epic is also lobbying lawmakers to take action against Google and Apple. The company has been a vocal supporter of the Open App Markets Act, which would prohibit app store operators from requiring developers to use their own payment systems.
The battle between Epic Games and Google is just beginning, but it could have a profound impact on the future of the app market.