As a researcher with years of experience in the tech industry, I must admit that I find myself intrigued by this latest development between Google and Epic Games. On one hand, it’s refreshing to see competition pushing boundaries and challenging established norms. However, on the other hand, I can understand Google’s apprehensions about opening its app store to third-party payment systems, as it could potentially disrupt their competitive edge against Apple.
Google has petitioned an American appeals court to overturn a decision made by a lower court in the antitrust case filed by Epic Games. This decision could potentially compel Google to permit third-party app stores and payment options within its app distribution platform, Google Play Store.
The initial court ruling aimed to make Google’s app store and its associated apps compatible with various payment methods, including those that support cryptocurrencies.
In a 110-page submission to the Ninth Circuit Appeals Court on November 27, Google contended that the judge’s ruling could significantly hamper their competitive stance against Apple and the iPhone.
In simpler terms, the large tech company contended that the judge should have understood Google and Apple compete in the smartphone market, and therefore, the judge’s verdict in Epic’s lawsuit against Apple, where it was decided Apple did not break antitrust regulations, could serve as a guide for this case.
Additionally, it was proposed that Judge James Donato should have handled the case personally rather than holding a jury trial since Epic’s lawsuit against Apple lacked one. The decision compels Epic to contend with competing app stores, a requirement that Apple is not subject to.
In August 2020, Epic filed lawsuits against both Apple and Google, alleging that they were unjustly limiting applications to solely utilize their in-app payment systems (which charge a 30% fee for all transactions) and prohibiting apps from employing external payment options.
As a analyst, I tried to find an alternative for Apple and Google’s fees within our app by introducing our own payment system. However, this action led these tech titans to remove our flagship game, Fortnite, from their app stores. In response, we chose to file lawsuits against both companies.
Applications available via Apple and Google’s app stores do not currently allow cryptocurrency transactions, limiting the capabilities of crypto-centric applications such as Non-Fungible Token (NFT) marketplaces, which in some cases serve primarily as digital art galleries.
Last month, Judge Donato instructed Google to remove the policy that prohibits external payments in apps on its Play Store. This means that Google should now permit developers to offer users the choice to download apps from sources other than Google’s app marketplace.
In the wake of a verdict handed down by a jury in December 2023, I, as a researcher, discovered that Google had breached antitrust regulations by impeding the growth of competing app stores.
The judge’s decision and his order have been temporarily suspended, but the appeals court may either maintain the order while Google’s appeal is ongoing or postpone the requirement for Google to modify its app store until they reach a final decision.
Oral arguments are slated to be heard at the San Francisco-based court on Feb. 3, 2025.
Epic Games did not immediately respond to a request for comment.
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2024-11-29 07:12