Thursday, November 28, 2024

Google Asks Federal Judge To Toss Epic Games Ruling Over App Store Billing, Report Says

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Topline

Google requested Wednesday that a federal judge throw out his ruling in an antitrust lawsuit won by Epic Games last year, according to Bloomberg, as the Alphabet subsidiary looks to avoid court orders demanding it to make significant changes to the Google Play Store’s payment system.

Key Facts

Google argued in a filing that U.S. District Judge James Donato should have made a decision himself instead of holding a trial with a jury in the antitrust case last year, when Google was ordered to allow app developers to implement their own billing options alongside Google Play’s payment system for in-app purchases.

Previously, app makers were limited to Google’s proprietary payment system for purchases on the Google Play platform.

Google also argued Donato should have acknowledged Google’s competition with Apple in the smartphone market, citing a finding from another judge who found last year that Apple did not violate antitrust laws in a lawsuit also brought by Epic, according to Bloomberg.

Donato’s ruling in favor of Epic Games forces Google to do business with competing app stores, Google alleged, arguing it is not legally required to do so.

Epic Games did not immediately respond to Forbes’ request for comment, though it did tell Bloomberg that Google’s appeal relied on “flawed arguments.”

Oral arguments are scheduled for Feb. 3, 2025.

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Big Number

$700 million. That is how much Google agreed to pay to settle the antitrust suit filed by Epic Games. Some $630 million was “to be distributed for the benefit of consumers” while $70 million was slated for a fund used by the 36 states that signed onto Epic’s lawsuit against Google.

Key Background

The lawsuit levied against Google stemmed from 2020, when Fortnite, the wildly popular video game developed by Epic, was removed from the Google Play Store after it attempted to use an external billing option without Google’s permission (Fortnite features an item shop allowing users to buy in-game skins, weapon camos and items with real money). The game was also removed from Apple’s App Store, resulting in Epic filing suit against Google and Apple, accusing the tech giants of forcing app developers to use their proprietary payment systems that included fees. Apple initially walked away unscathed from its lawsuit with Epic, though it is now in a reignited legal battle with Epic and was ordered to allow app makers to use other purchase systems besides its own when it came to in-app purchases. Google was ordered to do the same thing but was ladled with providing a large settlement payout. It also vowed to simplify the process of sideloading, which is when an app is installed from the web without using an app store.

Further Reading

Google Will Pay $700 Million To Settle Antitrust Suit—And Will Change Play Store Billing (Forbes)

Apple And Fortnite Maker Epic Games Are Heading Back To Court Again — Here’s Why (Forbes)

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