Epic Games, Fortnite creator, wins case against Google over mistake that caused $200 billion loss

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Epic Games, Fortnite creator, wins case against Google over mistake that caused $200 billion loss.

Google's legal defeat against Epic Games Inc., the maker of Fortnite, an online game, indicates that the influence of a big company like Google may now be waning. Google's defeat could now mean the end of Apple Inc.'s control over the App Store. It's interesting that Google makes about $200 billion from it, that is, $200 billion, and it also determines how billions of people use their mobile devices.

Epic Games, Fortnite creator, wins case against Google over mistake that caused $200 billion loss.

Google’s legal defeat against Epic Games Inc., the maker of Fortnite, an online game, indicates that the influence of a big company like Google may now be waning. Google’s defeat could now mean the end of Apple Inc.’s control over the App Store. Interestingly, Google makes about $200 billion from it, that is, $200 billion, and it also determines how billions of people use their mobile devices.

Bloomberg said on Monday a San Francisco jury slammed the two companies’ business models in the apps. Because these companies charge up to 30% commission from software developers, they take it when developers typically have few other options.

Google misused the App Store:

Epic Games, Fortnite creator, wins case against Google over mistake that caused $200 billion loss.

For several years, online game maker Epic took legal action against it. Now, a federal jury has agreed that Google monopolized Alphabet Inc. It is expected that there will be a change in the App Store rules after this case. But regulators and lawmakers around the world have already aimed at it. Many cases were registered against Google in India.

30% commission will end!

“The monopolies are going to end, and the end of the 30% is going to come soon,” Epic CEO Tim Sweeney said in an interview after the decision. Apple won a similar lawsuit against Epic in 2021, but the decision was made by a single judge.

What decision did the jury take?

In Google’s case, a jury unanimously favored Epic with all members allowing actual consumers to weigh in on the world of smartphone apps. In a four-hour debate, they found that Google had engaged in anti-competitive practices, i.e., unfairly maintaining its monopoly on the App Store. The jury also found that Google illegally imposed its billing system on developers and caused harm to Epic.

What was the origin of the Google-Epic conflict?

It is noteworthy that in 2020, Fortnite was removed from Apple and Google Play app stores, due to which this conflict between Google and Epic started. The game developer, i.e. Epic, had secretly created its payment system.

The idea was to make Apple and Google lose up to 30 percent of the revenue share from in-app subscriptions and purchases on their platforms. Epic sued both companies in response.

Google grants concessions to many companies:

Google has also received criticism that it makes side deals with developers, such as Spotify Technology SA, that pay lower commissions.

A jury ruled Monday that Google shouldn’t let Android app developers use its billing system for software sold through its store and that it shouldn’t give custom agreements to some developers.

Now the success of both Apple and Google is at stake. Research firm Sensor Tower estimates that in-app spending will reach $182 billion next year and reach $207 billion in 2025.

It is worth noting that the European Union (EU) is already making changes to digital market laws. Apple must first allow third-party app stores and billing systems.

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