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· Posted on
February 21, 2024

Fortnite's parent company outplays Google in an Epic battle over Google's Play Store monopoly

Epic Games has won the case against Google over its claims that the latter used its powerful position to squeeze profits from app developers.

What's the key learning?

  • The jury found that Google clearly had a monopoly when it came to how people got access to apps on Android devices.
  • This decision may force Google to allow app developers to sell their apps outside of the Play Store.
  • This would mean Google doesn't get the 30% clip of the in-app revenue, and that Google could lose out on the more-than $40 billion USD in app revenue each year.

👉 Background: Google is the owner of Android, which has over 3 billionactive Android devices. As the owner of Android, Google also owns the only app store on Android devices, the Google Play Store.

👉 What happened: Back in 2020, Fortnite creator Epic Games brought a lawsuit against Google. They claimed that Google used its powerful position to squeeze profits from app developers by taking a 30% clip on all in-app purchases. And 3 years later, Epic Games has won the case.

👉 What else: The jury found that Google clearly had a monopoly when it came to how people got access to apps on Android devices. And if this verdict holds, it could bring about huge changes for the app store economy.

What's the key learning?

💡In the tech world, a court's decision can upsend the might of any large monopoly. This decision may force Google to allow app developers to sell their apps outside of the Play Store.

💡And this would mean Google doesn't get the 30% clip of the in-app revenue. It also means that Google could lose out on the more-than $40 billion USD in app revenue each year.

💡This ain't the first time an anti-trust case has shaken up the tech industry. Back in 2001, Microsoft was found guilty of abusing monopoly powers. Microsoft retreated and reset, which actually created space for tech rivals, like Google, to emerge.

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