Epic Games' lawsuit against Google over the company's policies requiring all app developers using the Google Play Store to pay a commission of up to 30 percent on sales of digital goods or services began in the Northern District Court of California.
In his opening statement, Epic Games' attorney Gary Bornstein said that Google's actions have resulted in higher prices, lower quality and fewer choices. Bornstein also accused Google of employing a strategy of "bribery and obstruction" to discourage competition.
Google's lawyer Glenn Pomerantz argued that the company faces strong competition from companies such as Apple and therefore cannot be a monopoly.
Epic argues that Google has created an illegal monopoly over Android apps so that it can increase its profits through kickbacks, violating both federal competition laws and California laws on restraint of trade, while Google argues that it charges a reasonable fee and the necessary amount to operate a popular marketplace that developers rely on to reach users.
The case is being closely watched by Apple, which operates the App Store, which has been accused by developers of unfairly withholding revenue from in-app payments and making it difficult for app creators to communicate with their customers.
If Epic wins the case, it could force changes to Android, where it charges 15 to 30 percent for digital goods and services purchased within apps, making it easier for users to bypass the Google store to download games.
DISPUTE STARTED IN 2020
The dispute between Google and Epic Games stemmed from an incident in August 2020 when Epic released updates to Fortnite that allowed the company to directly bill customers for in-app purchases instead of through app stores.
Google and Apple then quickly removed Fortnite from their app stores, and Epic sued both companies for direct billing and the ability to unlimitedly install the Epic store on smartphones.
Epic's case against Apple was heard in 2021 and appealed earlier this year.
Meanwhile, the U.S. Justice Department's monopoly case is ongoing to determine whether Google violated the law through exclusive agreements with cell phone makers and browser makers to make its search engine the default for consumers.
A separate Justice Department antitrust trial focusing on Google's online advertising business is scheduled to begin early next year in Virginia.
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