Epic Games Prevails in the Antitrust Trial Against Google
Google’s problems remain unchanged since a US jury found that the company is monopolizing the Play Store. Video game developer Epic Games, best known for the game Fortnite, has won an antitrust trial against Google. The win could have a big impact on the app store economy. The decision was on the grounds that the tech giant was establishing an unlawful monopoly through its Play store and billing service. Three hours of deliberation followed a four-week trial that focused on a lucrative payment system within the Google Play Store before a unanimous decision was reached. The store serves as the primary location for hundreds of millions of users worldwide to download and install apps compatible with smartphones powered by Google’s Android software.
Epic Games win the antitrust trial
Three years ago, Epic Games sued Google, claiming that the internet search giant had been abusing its position to keep its Play Store free from rivals. In this way, it was safeguarding a billion-dollar profit margin. The gaming industry has traditionally seen game developers submit to the power of app stores. With this victory, the industry marks a turning point. The fact that Epic Games’ lawsuit against Apple was dismissed two years ago makes it even more noteworthy. Tim Sweeney, the CEO of Epic Games, stated in court that his company could save up to billions of dollars if they didn’t have to pay Google. Though the fines for the Google case have not yet been determined, Epic Games did not submit any financial claims.
What was the Google v Epic Games antitrust trial?
Video game developer Epic Games claimed Google Play Store Antitrust Litigation was charging app developers 30% more for in-app purchases. With this, Google’s Play Store was essentially eliminating all competition. Despite making up a small portion of Google’s overall revenue, these kinds of transactions are nevertheless a high-margin business. To maintain more of the money it makes from in-app purchases and provide an app store that could rival Google’s Play Store for Android users, Epic filed a lawsuit against Google three years prior in 2020.
Epic said that Google illegally tied up its Play Store with its billing services. Doing so, developers were forced to use both in order to have their apps included. Epic accused the tech giant of using anti-competitive practices that hurt both consumers and developers. Google pulled Epic’s video game Fortnite from its store because the developer attempted to avoid paying Google’s fees by charging users directly for in-app purchases. The lawsuit was sparked by this.
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What did the jury rule in this antitrust trial?
After a month-long trial, the nine-person jury unanimously found in favor of Epic Games. They agreed on all eleven questions after three hours of deliberation. In essence, the jury concluded that Google had obtained and was still enjoying monopoly power in the markets for Android app distribution and in-app purchases of digital goods and services.
Google’s attorneys contended during the trial that the company could not function as a monopoly. It stated this was because it was in competition with Apple’s App Store. App Store is more widely used in the United States. Additionally, Google announced that it would appeal to the 9th U.S. Circuit Court of Appeals, which is located in San Francisco.
This is an example of the greatness of the American justice system. A billion dollar company challenges a trillion dollar company over complex antitrust practices, and a jury of 9 citizens hears the testimony and renders a verdict. And here it is in writing! https://t.co/6btDlhRqEF
— Tim Sweeney (@TimSweeneyEpic) December 12, 2023
What are the implications of the ruling?
After this ruling, Epic Games will have the opportunity to file a court document. It can outline its recommendations for fixing Google’s Play Store. However, it could jeopardize Google’s $10 billion in yearly revenue from in-app purchases and app sales. On Google’s Android mobile platform, the ruling may open the door for competing app stores. However, long appeals procedures will probably stall any changes for years.
In addition, Google might be asked to permit developers to employ payment processors other than Google’s, which could have a big effect on Google’s whole business strategy. The verdict of the trial won’t have a direct impact on the company’s primary revenue stream, which is digital advertising primarily connected to its search engine, Gmail, and other services. The jury’s unanimous decision may also put more pressure on Google at a moment when the tech giant is facing legal action from the US Justice Department, which has charged it with violating antitrust laws.
Google’s claims of an open app store market
As proof of a free market, Google cited competing Android app stores. These included the one Samsung installs on its well-known smartphones. More than 60% of Android phones offer alternate stores for Android apps. This is in addition to the competing app stores that come pre-installed on devices manufactured by other companies.
However, Epic provided proof to support the claim that Google views competition as a figment of the imagination. It pointed to the hundreds of billions of dollars it has given to firms like Activision Blizzard, a developer of video games. This was to deter them from launching competing app stores. In addition to providing these payments, Epic Games asked the jury to take into account the Google “scare screens” that appear and alert users to possible security vulnerabilities when they attempt to download Android apps from some of the alternatives to the Play Store.
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Similar case: Epic Games vs Apple
In an identical lawsuit Epic filed against the iPhone app store, Apple won. However, a federal judge’s decision from that 2021 trial is being appealed to the US Supreme Court. The case’s outcome differed significantly from that of Epic Games’ antitrust lawsuit against Apple, which was mostly unsuccessful. Even though Epic is still trying to prove Apple was a monopolist, a lower court judge and an appeals court upheld the decision. It means the case will not go to the U.S. Supreme Court. Epic prevailed on a single issue: developers of apps and games ought to be permitted to promote cheaper alternative stores within the apps they offer for sale on the Apple App Store.
Major difference in both trials
The primary distinction between Google and Apple’s case was Project Hug. Apple didn’t need to sign agreements with other businesses to maintain its competitive advantages because it produced its own smartphones. However, Google developed the Android platform. To maintain global collaboration and the viability of its Google Play store, Google launched Project Hug. In this, it compensated rival retailers like Samsung and game developers handsomely for using its store instead of competing with it or eliminating competition.
For example, Google paid Samsung money to guarantee that, in addition to Samsung’s own store, Google Play was the only app store that came preinstalled on Samsung smartphones. Additionally, Google allegedly advised game developers to use the Google Play store instead of starting their own rival businesses. According to Epic, Google was able to charge up to 30% in royalties for each app, game, or in-game virtual good that was purchased because of these practices. Developers were forced to comply and pay the costs.
Video Game industry expansion
In 2023, the video game industry experienced both successes and setbacks, including studio closures, significant layoffs, and numerous lawsuits. There are significant ramifications for the video game industry from lawsuits. For instance, Epic Games’ against Apple and Google, as more developers aim to enter the mobile market. Given Epic’s victory over Google, it’s possible that Google will be forced to modify its invoicing procedures and possibly reduce its royalties. For independent developers and smaller studios, this would be encouraging. It would increase the financial viability of mobile app stores, giving them additional platform options for their games. Any potential fines, though, are probably going to be challenged by Google. It would mean that Epic might have to continue battling the law for years to come.
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Lego and Fortnite Announce Ground-Breaking Gaming Partnership
Lego and Epic Games have finally revealed the design of their kid-friendly metaverse as 2023 draws to a close. Fortnite and Lego have announced a ground-breaking partnership that promises to transform the battle royale gaming genre. The Fortnite Lego edition has been in development for a full 18 months. It is being marketed as a multiplayer “survival crafting game.” When it launches on December 7, it will broaden the Fortnite universe. It will serve as a fun and secure online playground for kids and their families. Every gaming console that supports Fortnite will have the game available. The Danish brick manufacturer is moving further into the digital sphere with this partnership. The move comes just months after it introduced “Lego Insiders,” an online loyalty program, in August.
Lego – Fortnite Metaverse Gaming Partnership
With the partnership, players can now create unique Lego islands every time they play the game. This is thanks to a randomly generated terrain system that was inspired by Minecraft. The power of the Unreal Engine is what makes this cutting-edge feature possible. It is a powerful game development platform that has created a comprehensive “Brick Database” especially for Lego. The partnership demonstrates Epic Games’ dedication to broadening its game selection and drawing in players of all ages, as does the inclusion of other features like Rocket Racing and Fortnite Festival. These advancements demonstrate the company’s commitment to developing game environments that are kid-friendly and guaranteeing young players’ safety when they are playing online.
Building audience loyalty
Lego’s partnership with the game has the potential to significantly expand its viewership. Lego could potentially reach a vast audience through Lego Fortnite, as evidenced by Fortnite’s 400 million registered users and 80 million active players monthly. Using digital programs, Lego has been cultivating audience loyalty for the past 18 months. Additionally, it has been carving out a more significant place in people’s lives. It is presenting itself as more than just a toy company and encouraging play that not only helps kids learn life skills but also enhances mental health.
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Epic Games’ commitment to youth friendly gaming entertainment
Lego Fortnite is a significant step for Epic Games in drawing in younger players while still keeping the game kid-friendly. Epic Games has taken major steps to address these issues, even though the FTC had previously fined the company $520 million for concerns regarding in-game purchases and young players’ safety online. For players under the age of 13, these procedures involve the implementation of “cabined accounts,” which have particular limitations and security precautions. With an E10+ rating, Lego Fortnite is intended for children 10 years of age and older. Some video games in this genre may contain language or violent content that isn’t suitable for younger players.
hey, it’s the Sphere from Fortnite!!@spherevegas pic.twitter.com/2rMQAS0uAH
— Fortnite (@FortniteGame) December 3, 2023
Creating new worlds
All age groups will be able to enjoy an immersive digital experience thanks to this collaboration. It gives users the ability to create and share their own worlds with other players by allowing them to add particular conditions and features to their Lego islands. By enabling players to explore and update each other’s worlds over time, this shared experience fosters a sense of evolution and growth within the game’s universe. Lego has been working to go beyond its reputation as a physical toy brand and develop consumer loyalty through a variety of digital programs, like its August launch of the Lego Insider online loyalty program. This is in addition to investing over $1 billion in Epic Games for this metaverse experience.
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Strategic Partnership
The partnership is a strategic move for both businesses. Through this partnership, Lego, one of the most well-known toy brands in the world, will be able to reach a wider audience and capitalize on the growing popularity of the battle royale genre. Working with Lego gives Fortnite’s game a distinct depth that enables them to give players an interesting experience.
Epic wants to become more popular among younger gamers, but it faces competition from titles like Roblox and Minecraft. This objective is furthered by their collaboration with Lego, a brand well-known for its cooperative building experiences, which gives kids a chance to engage in imaginative play within the Fortnite world.
Dress for adventure with new LEGO Styles of your favorite Fortnite outfits!
Check them out in your Fortnite in-game Locker and the Item Shop now. Learn more: https://t.co/gMabemu810 pic.twitter.com/Cz97s2vJWD
— LEGO (@LEGO_Group) December 3, 2023
Upcoming Game release
The Danish company’s brand value increased by 10% in the past year to $13.069 billion. It is presently ranks 59th out of the top 100 global brands according to Interbrand‘s Best Global Brands research for 2024. Though the game’s release is only a few days away, not much is known about what to anticipate from the intellectual property. The only other fact is that players will be able to explore open worlds that blend gameplay elements familiar to fans of both Fortnite and Lego.
In summary, the partnership between Fortnite and Lego represents an exciting advancement in the gaming sector. It unites two well-known brands and brings cutting-edge gameplay features that have the potential to completely transform the battle royale genre. Players can anticipate building their own Lego-based worlds. Furthermore, they can share them with the world when the game launches in early 2024.
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