Alphabet’s Google and “Fortnite” creator Epic Games went head-to-head in a U.S. court on Thursday, as a judge deliberates on potential reforms to open Google’s lucrative Play Store to more competition.
Epic Games has petitioned U.S. District Judge James Donato in San Francisco to mandate that Google allow Android developers to present users with multiple payment options, free from Google’s interference. Additionally, Epic seeks permission to introduce competing app stores, including its own Epic Games Store, on the Android platform without delays or obstacles.
Last year, Epic succeeded in convincing a jury that Google had unlawfully curbed competition by imposing restrictions on app downloads for Android devices and by compensating developers for in-app transactions. Rather than seeking monetary damages, the North Carolina-based company is pushing for a court order that would compel Google to cease certain practices and adopt new ones.
Google has dismissed Epic’s proposed reforms as “harmful and unwarranted,” urging Judge Donato to reject them.
During Thursday’s hearing, experts from both sides presented their cases regarding the proposed changes and Google’s objections.
“This case is about the opportunity to compete generally. I am not looking for relief that is going to give a helping hand just to Epic,” Judge Donato remarked. “What we are doing is leveling the playing field and lifting the barriers.” He expressed concern that parts of Epic’s proposal were “open-ended and too vague,” while also noting that Google, as an “illegal monopolist,” must face some consequences.
Judge Donato challenged the scope of Google’s arguments against Epic’s proposals, dismissing Google’s portrayal of a “terrifying world of chaos” if the app store market were opened to greater competition. “I just don’t buy it,” Donato said. “We are going to be walking on new terrain for a while. That’s just the consequence of breaking the antitrust laws — we have to do things in a different way.”
Google contended that a broad injunction was unnecessary, highlighting a separate case where the company agreed to modify its Play Store and pay $700 million in a settlement with states and consumers. Judge Donato, overseeing both cases, questioned the fairness of that settlement and has yet to decide on its approval.
He did not rule on Epic’s proposed injunction during Thursday’s session, indicating a desire to further explore some of the technological implications involved. Donato mentioned that closing arguments would be scheduled for a later date, potentially in August, with an aim to issue his ruling promptly.
Epic previously brought a similar antitrust lawsuit against Apple in 2020, accusing the iPhone manufacturer of excessively restricting app distribution and in-app payments. Apple, denying the allegations, returned to California federal court on Wednesday, seeking to convince a judge that it has complied with an order to foster greater competition.
The case is Epic Games Inc. v. Google LLC et al, U.S. District Court, Northern District of California, No. 3:20-cv-05671-JD.
