Match might have settled its antitrust lawsuit with Google final week, however Fortnite maker Epic Video games continues to be set to go to trial with the tech large at the moment, November 6, in hopes of convincing a jury that Google engages in anticompetitive conduct with regard to its Android app retailer, Google Play, and its fee construction. This case will differ barely from Epic’s battle with Apple on the identical matter as a result of, this time, Epic can’t allege there’s no different method to load apps onto Android units, because it may with Apple, as a result of Android does enable for sideloading apps. Although Epic will recommend Google makes that course of cumbersome, the majority of its arguments will focus on what it believes are anticompetitive agreements between Google and machine producers and builders.
The precedent Epic’s case will depend on is a Microsoft case the place courts discovered Microsoft to have a monopoly over the working system and have been abusing it, making it onerous for customers to obtain different browsers, like Netscape, on Home windows units.
To make its case, Epic plans to deliver claims beneath Sections 1 and a couple of of U.S. antitrust regulation, the Sherman Act, in addition to California’s anticompetitive legal guidelines, the Cartwright Act, and the Unfair Competitors Legislation. It can try to argue that Google restrains competitors inside two separate markets, together with the distribution of apps to Android customers and the marketplace for cost processing options for content material inside Android apps.
Google argues its commissions aren’t simply tied to billing, however affords low cost for third-party billing choices
In the present day, Google requires apps to make use of its personal first-party billing system, and prices app builders a 15% to 30% fee on the gross sales it processes.
Nonetheless, Google will counter Epic’s arguments by mentioning that it has rolled out a brand new choice for app builders referred to as Person Selection Billing, which Epic has declined to make use of. This program, nonetheless in pilot testing, is open to all builders who promote apps within the 35 markets the place it’s now obtainable, together with the U.S., and reduces the usual fee by 4% for firms who select to make use of their very own cost processing resolution. Spotify and Bumble have been the preliminary testers for the brand new system, first launched in November 2022, and Match, as a part of its settlement settlement, may also now benefit from this feature.
Picture Credit: an instance of Google’s Person Selection Billing choice in Spotify’s app
Google may also argue that its commissions aren’t simply tied to cost processing, however fairly assist it to develop different options and controls to maintain Android customers secure and information them to discovering new purposes, in addition to assist fund the instruments and providers builders must construct and develop their apps. Google additionally helps builders attain a broader viewers past the cell phone, with help for Android throughout platforms, starting from tablets to TVs to autos and extra. And it’ll word that 99% of its builders qualify for a fee of 15% or much less, based mostly on their revenues.
The aggressive panorama with different app shops, OEMs
The tech large moreover plans to push again at Epic’s claims that it doesn’t have competitors within the app retailer enterprise. It can level out that not solely does the Play Retailer compete with Apple’s App Retailer, which the Ninth Circuit ruling within the Apple case agreed upon, too, however Android additionally helps aggressive app shops like Samsung’s Galaxy Retailer and Amazon’s Appstore.
Epic, nevertheless, will try to display that Google makes it onerous for different app shops to succeed and attain customers, noting that 90% of apps are nonetheless downloaded by means of Google Play. And it’ll level out that Google bundles the Play Retailer with different Google apps that Android OEMs (unique tools producers) must comply with with a purpose to use Android.
Epic may also deliver up “Anti-Fragmentation Agreements” (AFAs) that stop the OEMs from modifying Android to permit for frictionless downloading of apps exterior of Google Play. Epic Video games will particularly reference one settlement it had made with the OEM OnePlus, to make Epic video games obtainable on its units by means of the Epic Video games app. However OnePlus needed to cancel the deal over issues that the association would have it bypassing the Google Play Retailer. The case may also look at a deal between Google and Samsung that Epic says was designed to stop the Galaxy Retailer from being a aggressive risk and require Google Play Billing on apps distributed by Samsung.
Epic will argue Google’s developer agreements are anti-competitive
A second set of agreements Epic will spotlight are these between Google and Android app builders themselves. One such program, the “Venture Hug” initiative, part of the Google Video games Velocity Program can be cited for example of the place Google paid opponents to not distribute their apps on Android exterior of the Play Retailer by concentrating on those that have been most prone to attrition from Play, then approaching them with a financial provide. For example, Epic will level to Activision Blizzard, the proprietor of King.com and maker of Sweet Crush and Name of Obligation, as one developer who wished to go the route of opening its personal app retailer. Google and Activision Blizzard then entered right into a three-year settlement in January 2020, price roughly $360 million, to maintain the developer on Google Play, Epic will argue.
Google, nevertheless, will characterize this program as a method to incentivize builders to launch their apps on Android concurrently they launch on iOS and plans to dispute Epic’s claims that it prevented builders from opening their very own app shops.
Android permits sideloading
Google will make word that, not like Apple, it additionally permits apps to be sideloaded on Android units — one thing Epic takes benefit of at the moment. It can word this course of is streamlined and helps preserve customers secure. However Epic will declare that this course of is made to be overly tough for finish customers, with a number of steps concerned and “scare screens” that warn customers of the safety dangers concerned with sideloading.
Epic may also recommend that Google hid gadgets from discovery by permitting execs and workers to have “off the document” chats, however Google will counter this as nicely, saying it has offered the courtroom with hundreds of chat logs and tens of millions of paperwork.
The tech large will finally push the notion that this case isn’t about competitors, however about cash — that’s, Epic Video games needs to achieve the Play Retailer’s 2.5 billion customers with out having to pay.
“Android’s selection and suppleness work nicely for customers and builders of all sizes. We look ahead to making our case in courtroom as we combat to maintain our customers secure from hurt, companion with builders to develop their companies, and preserve the Android ecosystem thriving and wholesome for everybody,” reads a Google weblog put up by Wilson White, VP, Authorities Affairs & Public Coverage.
Epic’s lawsuit initially concerned Match and a number of other U.S. Attorneys Normal, however Google reached a settlement with the latter final month and with Match final week. Epic will now combat the antitrust battle by itself. The lawsuit, held within the U.S. District Courtroom in California’s Northern District, will embody testimony from a lot of Google and Android execs, together with CEO Sundar Pichai, and Epic Video games CEO Tim Sweeney, in addition to Apple, Netflix, and different Android builders.
Google can be concerned in one other antitrust lawsuit with the Division of Justice over its alleged search monopoly. Epic, in the meantime, misplaced its antitrust battle with Apple and is now asking the Supreme Courtroom to weigh in.