Google vs Epic Games Antitrust Trial: Jury hands Epic a win

The jury has handed Epic a win in the Google vs Epic antitrust trial. A unanimous jury decision ruled that Google operates an illegal monopoly in the Play Store and billing service. Google intends to appeal the verdict.

Almost three years after Epic sued Google for illegal app store monopoly, Epic has secured its first legal win. The jury answered ‘Yes’ to every question in the ruling, effectively declaring Google used anticompetitive means to secure an advantage. The jury also ruled that Google’s actions harmed Epic Games. They also voted yes to Google having entered into one or more agreements that unreasonably restrained trade in a relevant antitrust market.

Epic Games released a statement after the antitrust trial victory ruling highlighting the verdict as a win for all app developers and consumers.

The CEOs of both companies, Tim Sweeney (Epic Games) and Sundar Pichai (Google) met earlier on December 7 to try to reach a settlement. The Judge ordered settlement talks attempt was unsuccessful.

The Fortnite maker lost a similar antitrust trial against Apple two years ago. The key difference in this trial was that Google had secret deals with certain developers, emphasizing that Google did not treat all developers fairly. Apps such as Spotify, Netflix, and more had secret dealings with Google that allowed them to bypass Play Store commissions or pay lower commissions on their sales. Google also did not force its own app - YouTube - to use Play Store billing when it was clearly enforcing the same on other developers. 

This Google vs Epic Games ruling is a jury ruling unlike the one in the Epic vs Apple trial which saw Judge Yvonne Gonzalez Rogers rule in favor of Apple. In this instance, U.S. District Court Judge James Donato will decide the remedies.

One of the key differentiators for the Google vs Epic trial was Project Hug. Apple manufactures its own handsets and has a relatively closed ecosystem. However, Google’s Android ecosystem allows other companies to manufacture hardware as well as create their software. 

When Epic Games allowed Fortnite players to bypass Google Play Store billing, the Mountain View company launched Project Hug. Project Hug, later known as ‘Apps and Games Velocity Program’ was specifically intended to retain Google’s dominance in the Apps market. There were concerns other Android App marketplaces such as Samsung and Amazon might move to follow Epic Games’ lead which would result in substantial revenue loss to Google. Google takes a nearly 30% cut in every sale on the Play Store.

We have listed the 11 questions that the jury voted on below for your reference. You can also check out the jury form embedded below.

1. Did Epic prove, by a preponderance of the evidence and in accordance with the instructions given to you, the existence of a relevant antitrust market?

Yes

2. If answered Yes to Q1, please specify each relevant product market and associated geographic market that Epic proved.

3. Did Epic prove, by a preponderance of the evidence and in accordance with the instructions given to you, that Google willfully acquired or maintained monopoly power by engaging in anticompetitive conduct in any market that you specified in response to Question 2?

Yes

4. If you answered “yes” to Question 3, please specify each relevant product market and associated geographic market for your answer:

5. If you answered “Yes” to Question 3, did Epic prove by a preponderance of the evidence and in accordance with the instructions given to you, that it was injured as a result of Google’s violation of the antitrust laws?

Yes

6. Did Epic prove, by a preponderance of the evidence and in accordance with the instructions given to you, that Google entered into one or more agreements that reasonably restrained trade in a relevant antitrust market?

Yes

7. If you answered “Yes” to Question 6, which of these agreements did you find to be unreasonable restraint(s)  of trade in accordance with the instructions given to you?

8. If you answered "Yes" to Question 6, please specify each relevant product market and associated geographic market for your answer.

9. If you answered "Yes" to Question 6, did Epic prove, by a preponderance of the evidence and in accordance with the instructions given to you, that it was injured as a result of Google's violation of the antitrust laws?

Yes

10. Did Epic prove, by a preponderance of the evidence and in accordance with the instructions given to you, that Google unlawfully tied use of the Google Play Store to the use of Google Play Billing?

Yes

11. If you answered "Yes" to Question 10, did Epic prove, by a preponderance of the evidence and in accordance with the instructions given to you, that it was injured as a result of Google's violation of the antitrust laws?

Yes

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