by In a significant blow to big tech’s dominance in antitrust matters, Google suffered a stinging defeat against Fortnite-maker Epic Games in a California courtroom. This defeat could potentially set a precedent and have ramifications for other cases pending against tech giants in the United States.
While jurisdictions like Europe, Britain, and India have implemented regulations to curb the power of big tech, companies such as Google, Apple, Meta (formerly Facebook), and Amazon have largely escaped major setbacks on their home turf. With Washington lawmaking gridlocked and pro-business judges prevalent in federal courts, accusations of illegal monopoly power have largely gone unanswered.
However, a federal jury consisting of nine members changed the landscape on Monday by ruling in favor of Epic Games. The jury decided that Google’s refusal to allow outside apps to take payments on Android phones, apart from through the search giant’s app store, was unfair to Epic Games. This decision marks the first antitrust loss for any big tech firm and could send shockwaves through the industry.
Matt Stoller, director of research at the American Economic Liberties Project, commented that “big tech is not above the law” and emphasized the significance of this defeat for Google. The litigation surrounding Google’s antitrust practices is far from over, with questions remaining about the company’s appeal and how the judge will order Google to comply with the jury’s decision.
While the appeals court that is likely to hear the Google case has previously dismissed Epic’s appeal against Apple, appellate courts typically don’t overturn jury verdicts lightly. The remedy ordered by the judge could have far-reaching implications, potentially impacting Apple’s own app store practices.
Epic Games is pushing for the judge to mandate alternative app stores and billing systems on Android, which would significantly change the platform. However, the final resolution of this litigation remains uncertain.
Critics of big tech also point to another major case involving Google, where the U.S. Department of Justice is suing the company over its online search practices. If the judge in that case chooses not to hold Google accountable, it would reflect poorly on the judiciary.
Additionally, attention is now turning to Apple, with many wondering if the iPhone maker will face further legal action. Court documents revealed that Google made substantial payments to smartphone makers to secure dominance for its products, stifling competition in the process.
Both Google and Apple have been accused of treating developers as adversaries. Epic CEO Tim Sweeney stated, “We’re going to do absolutely everything we can, as quickly as we can, to start changing the world.” It remains to be seen how these cases will shape the future of big tech and its relationship with antitrust regulations in the United States.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
