Google is set to defend its app store practices in federal court against allegations of antitrust violations brought by Epic Games, the developer of massively popular game. At the heart of the lawsuit is Google’s app store “tax” which ranged to 15 to 30 percent of in-app purchases.that Google is set to face another antitrust lawsuit as the company is set to enter a San Francisco federal court to defend its Play Store’s in-app purchasing system.
The heart of the controversy lies in the commissions Google charges for in-app purchases, ranging from 15 percent to 30 percent, which Epic Games claims inflate costs for both consumers and app developers. Despite the Android operating system allowing for alternative app marketplaces, Epic insists that Google’s practices restrict fair competition within the app ecosystem.
Epic Games’ CEO, Tim Sweeney, has openly criticized Google’s “user choice billing” as deceptive, while Google’s Wilson White has dismissed Epic’s claims, suggesting the game developer is attempting to leverage the Android platform without fair compensation. Judge Gonzales Rogers was quite ambiguous over whether or not Apple held monopoly power over the mobile gaming market in her ruling, stating: “The evidence does suggest that Apple is near the precipice of substantial market power, or monopoly power, with its considerable market share. Apple is only saved by the fact that its share is not higher, that competitors from related submarkets are making inroads into the mobile gaming submarket, and, perhaps, because did not focus on this topic.
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