Google has monopoly over Android app store, jury rules

The “Google Play” app store operates as an illegal monopoly that relies on anticompetitive tactics to stifle potential business rivals, a California jury determined Monday in a stunning blow to the Big Tech giant’s empire.

The nine-person jury deliberated for just three hours before delivering a unanimous verdict in favor of “Fortnite” maker Epic Games, which waged a years-long legal battle after Google booted the game from its app store. The decision could upend one of the most lucrative parts of Google’s business and jeopardize billions of dollars in annual revenue.

Epic’s attorneys argued Google relies on a two-pronged “bribe and block” scheme to stop competitors from launching their own app stores or otherwise challenging its monopoly. At the same time, Google pockets a cut of up to 30% on digital transactions made within its app store.

Epic CEO Tim Sweeney cracked a smile as the verdict was read in federal court and later celebrated the win by tweeting “Victory over Google!” 

The company described the outcome as a “win for all app developers and consumers around the world.”

The decision marked a major blow during a particularly fraught time for Google, which is awaiting a judge’s decision on a separate federal antitrust trial targeting its online search empire. The company also faces a third federal case over its digital advertising practices, along with multiple other probes.

The case now proceeds to the remedy phase, where US District Judge James Donato will determine what actions should be taken to rein in Google’s illegal business practices. Donato scheduled hearings on the matter in January.

Google plans to appeal the verdict, according to Wilson White, the company’s vice president of government affairs and public policy.

“We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem,” White said in a statement.

During the trial, Google was formally sanctioned by Donato for destroying employee chat logs that it had been ordered to preserve. The judge called Google’s actions “deeply troubling” and said he had “never seen anything so egregious.” Experts told The Post that his harsh words are likely to haunt Google in court for years to come.

Epic’s case focused in part on a Google initiative called “Project Hug,” where the company would make payments to major game and app developers to dissuade them from launching rival services.

In one case, Google paid “Call of Duty” parent Activision-Blizzard a whopping $360 million in incentives in exchange for launching its products on the Play Store. Google denied wrongdoing, arguing it faces stiff competition from Apple and makes the payments as fair compensation to developers.

The jury’s decision was a “major victory in the fight against one of Google’s most profitable monopolies,” according to Katherine Van Dyck, senior legal counsel at the antitrust watchdog American Economic Liberties Project.

“Epic’s decision to forego monetary damages and instead pursue injunctive relief all but ensure that this decision will fundamentally reshape Google’s monopoly, which it has leveraged to exploit app developers and stifle innovation,” Van Dyck added.

A similar legal fight between Epic Games and Apple over its app store practices resulted in a 2021 split verdict that mostly favored the iPhone maker. That ruling is still under appeal in the Supreme Court.