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Epic Games won its antitrust battle with Google. But what comes next?

 9 months ago
source link: https://finance.yahoo.com/news/epic-games-won-antitrust-battle-204529031.html
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Epic Games won its antitrust battle with Google. But what comes next?

Sarah Perez
Thu, December 14, 2023, 5:45 AM GMT+9·7 min read
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Image Credits: SomeMeans (opens in a new window) / Getty Images

Google's defeat in its antitrust battle with Epic Games was a sweeping victory for the Fortnite maker and a significant upset to the business model underpinning the mobile app ecosystem, where platforms host app stores and then take a cut of developer revenues. But what does the ruling actually mean, at least in the near term, for app developers? That's something that remains to be seen, as the case isn't over until a judge renders a decision as to what, specifically, Google's penalty should be.

A San Francisco jury on Monday swiftly returned a verdict in Epic's favor in a matter of hours -- not days or weeks -- finding that Google "willfully acquired or maintained monopoly power by engaging in anticompetitive conduct," as a court filing states. But while the jury determined the liability in the case, it's still up to the judge to decide what the remedy will be. That means the two parties will still get to plead their cases to the court later in January with the hope of shaping exactly how Google will need to adjust its operations to make up for its anticompetitive behavior.

More than likely, Google won't roll out any significant changes to its Google Play Store until the judge makes this final decision as to what, exactly, needs to be done. If it did so voluntarily before the decision, it would only complicate matters further if the judge then ruled that other actions needed to be taken.

In other words, over the next several weeks or months as the case enters its remedial phase, the Play Store isn't changing its rules. Developers will still need to pay their commissions, as before, often passing the increased cost of doing business onto consumers, also as before. Google's side deal forged with Spotify and settlement with Match will also remain intact.

We don't know yet if U.S. District Judge James Donato, who tried the case, will force Google to unwind any of its deals, or if the court will specify what sort of competitive agreements Google can enter into in the future with regard to app publishers or OEMs. Nor do we know how the judge will manage the specifics around alternative app stores or third-party payment systems -- for example, by dictating the discounts Google should offer. Epic will likely argue for more specific and detailed guidance from the court, while Google will push the court to understand that it still has a business to run and that too much restriction would ultimately harm competition.

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