In a San Francisco federal court, Google is facing a new legal challenge to its digital payment processing system in the Play Store. The case, brought by Epic Games, the maker of the popular video game Fortnite, questions whether Google’s commission system has been illegally driving up prices for consumers and developers. This comes after Epic Games lost a similar trial against Apple’s iPhone app store. The outcome of the trial against Apple did open the possibility of allowing apps to provide links to other payment options, potentially undermining the 15% to 30% commissions collected by both Apple and Google. Epic Games is now taking aim at Google’s commission system, arguing that Google maintains a stranglehold on the Android app ecosystem.
Google defends its commissions as a way to be compensated for the investments made into the Play Store and to protect the security of millions of people who download apps on Android phones. The trial, which includes testimony from Google CEO Sundar Pichai, is expected to last until Christmas. Google has recently settled allegations brought against the Play Store by state attorneys general and Match Group, the owner of Tinder, ahead of the trial with Epic Games. The terms of the settlement with state attorneys general will likely be revealed during the trial. Epic Games CEO Tim Sweeney, who has already criticized Google’s “user choice billing” system, is also expected to testify in court.
Keywords: Fortnite, Google, Play Store, commission system, Epic Games, app ecosystem
