Epic Games achieved a significant victory over Google in their antitrust battle, challenging the established business model of the mobile app ecosystem. The verdict, delivered swiftly by a San Francisco jury, found that Google had “willfully acquired or maintained monopoly power by engaging in anticompetitive conduct.” However, the actual implications for app developers remain uncertain until a judge determines the specific penalty for Google.
While the jury identified liability, the judge will decide the remedy, and both parties will present their arguments in January. Until then, Google is unlikely to implement substantial changes to its Google Play Store voluntarily, as doing so could complicate matters based on the court’s final decision.
During the remedial phase, which may span several weeks or months, the Play Store’s rules will remain unchanged. Developers will continue to pay commissions, potentially passing increased costs to consumers. Existing agreements, such as Google’s side deal with Spotify and settlement with Match, will also persist.
The ruling immediately impacts the legality of the app store business model itself and potentially influences similar marketplaces. The decision challenges the walled garden model, where companies dictate rules and charge commissions. It introduces uncertainty into the fundamental business models of companies like Google and Apple, which may prompt reconsideration of their operations.
The verdict could lead to class action lawsuits, allowing other plaintiffs to challenge similar practices without Epic’s resources. The Coalition for App Fairness, a lobbying group supporting increased app market competition, views the ruling as significant, emphasizing that consumers, represented by the jury, recognize anticompetitive conduct and desire change.
However, there remains skepticism about how Google will implement the judge’s decision. Past actions by Google and Apple, such as pilot programs with limited benefits or fines for non-compliance, raise concerns about adhering to the ruling’s spirit. The Coalition for App Fairness advocates for clear rules to prevent circumvention.
While Epic celebrates the verdict as a win for all app developers and consumers globally, the ruling is just one step in challenging the app store business model. Legislation in various markets, including Europe’s Digital Market Act and the U.K.’s Digital Markets, Competition, and Consumers Bill, as well as ongoing considerations in other countries, plays a crucial role in reshaping the app ecosystem.
For the Coalition for App Fairness, the hope is that the Google-Epic decision prompts Apple to re-evaluate its business model, emphasizing that legality and ethical considerations should guide industry practices. The broader impact on the app store model awaits further developments, including legislative actions in different regions.
