It’s a modern-day David versus Goliath story in the tech world as the billion-dollar Epic Games picks a fight with the trillion-dollar Google and comes out with a decisive legal victory. But the prize is not money; it’s much bigger than that and could dramatically change the mobile app development landscape as we know it.
On December 12th, 2023, Epic Games won a unanimous decision in a legal battle against Google, where the jury ruled that Google engages in anti-competitive behavior. This victory could lead to fundamental changes in the way app stores operate, particularly the Google Play Store and its fees for in-app purchases.
Epic Games, known for popular titles such as Fortnite and the Unreal game engine, has been at odds with Google over the 30% cut it takes from apps with over $1 million in revenue on the Play Store. Epic Games believes these fees are exorbitant and unfair, arguing that Google holds an illegal monopoly with the Play Store and Google Play Billing.
However, it’s important to note that Android, the operating system on which the Play Store operates, is open source and based on Linux. There are alternative app stores where developers can distribute Android apps without Google. Yet, the majority of consumers still use the Play Store, and there are questions around Google’s dominance in the mobile app market.
The case also sheds light on Project Hug, where Google offered game developers substantial sums of money, including $147 million to Epic Games, to launch Fortnite on the Play Store. While these payments didn’t block developers from launching on other platforms, some internal documents and agreements with device manufacturers raise concerns about anti-competitive practices.
Comparing Google’s ecosystem to that of Apple, which has a closed-off system with the iOS operating system and the App Store, shows some stark differences. Apple does not allow alternative app stores for iOS devices, making it a more closed and restrictive system for developers.
This legal victory for Epic Games comes in contrast to its battle with the Apple App Store, where it mostly lost a similar case and subsequent appeals. The difference in the outcomes of these cases is an interesting point of discussion, as it raises questions about the fairness and competitiveness of app store policies.
The implications of this victory for Epic Games go beyond financial gains. The company is not seeking monetary compensation but rather fundamental changes to the way app stores function. As a result, this could benefit all mobile developers and lead to a more open and competitive app development landscape.
One of the key figures in this saga is Tim Sweeney, the controlling shareholder of Epic Games. Interestingly, at one point, Google considered taking a large stake in the company but decided against it upon learning of Sweeney’s ownership. This decision highlights Sweeney’s status as an outlier in the tech industry and his willingness to challenge big tech companies.
In the words of the late Steve Jobs, “The ones who are crazy enough to think they can change the world are the ones who do.” Tim Sweeney’s bold move to take on Google and emerge victorious embodies this spirit of challenging the status quo and driving change in the tech industry.
As the dust settles on this legal battle, the next steps involve Epic and Google coming together to address the lawsuit and work towards a resolution. The outcome of this collaboration could have far-reaching effects on mobile app development and the app store landscape, potentially paving the way for a more equitable and competitive environment for developers.
In conclusion, Epic Games’ legal victory against Google is a significant development in the tech industry, with the potential to bring about fundamental changes to the way app stores operate. This modern-day David versus Goliath story highlights the power of perseverance, innovation, and the willingness to challenge the status quo in shaping the future of technology and app development.
Google doing much worse than that stealing money from people
this is no david vs goliath… this is Goliath vs Goliath…
30% for essentially doing nothing. well done google ๐
Holy shit the megacorporation gets to keep all the money they get from addicted kids away from the other megacorpo I am so excited
Play store is very bad for game developers. ๐๐ If you agree.
ะัััะฐั ัะฒัะทะบะฐ. ะกะฟะฐัะธะฑะพ.
Guy speaks too fast and is all over the place. A bit too autistic for me, but good vid.
Good evening
The thing is,Apple's close ecosystem is more of a niche in the industry than an industry by itself,meaning that it isn't actually a monopoly,unlike Google,who tries to take control over an ecosystem that would still work withought it!
Epic games by no means is a one billion dollar company. x40 that maybe
I'm seeing silly comments below; Apple is a CLOSED market while Google is a OPEN market, you can't have a monopoly if your market is a CLOSED eco system, it also means less profit and harder time making money along with other kinds of laws.
Honestly whenever Google loses I'm happy
So….Apple has a similar App Store "haircut" tier: if your app makes less than $1M, the haircut is only 15%; otherwise it's 30%. In addition, the EU sued Apple and Apple will have to allow independent App Stores to sell apps for Apple devices.
I really hate how monopoly has come to colloquially mean "big company" and not the actual economic concept of a monopoly.
Google offering different platform rates based on their expected returns is just good business. No one else being allowed to create patented Apple products is an actual monopoly. Notable how the first one is prohibited by the government, while the latter is enforced by it. All while people clamor "Big business bad! Big government good!"
1:02
Remind me of a certain company that thinks that their platform is competitive to steam but it's actually not.
Tbh if apple lost it would mean Microsoft, Sony and Nintendo won't be able to keep consoles as a closed ecosystem anymore
Google pays to lawyers, Apple pays to judges.
think different meme got me ๐
W Google for not letting Tencent create their own CCP-affiliated app store.
Not an Unreal Engine anymore – just Engine, no more Unreal left
What's more fearsome is monopolies are generally welcomed by average citizens. They make the overall lives of citizens much better by driving the cost down to eliminate competition and making everything more efficient, until it doesn't. We cannot think about our past lives when we did not have Amazon's one day shipping anymore. We fear that if Amazon is gone, these benefits will also be gone. Standard Oil was selling gasoline at fraction of their competition to eliminate them. When they were dismantled, gasoline prices went up by 10 folds, created massive inflation, and caused Roosevelt's poll to plummet
๐ฏ Key Takeaways for quick navigation:
00:00 Google vs. Epic Games Legal Battle Overview
– Epic Games wins a legal victory against Google, challenging the 30% cut for in-app purchases on the Play Store.
– The case highlights the debate over the fairness of app store fees and the potential impact on the mobile app development landscape.
01:11 Apple vs. Google Legal Contrasts
– Epic Games won against Google, citing anti-competitive behavior, while a similar battle with Apple resulted in a loss.
– The closed nature of Apple's ecosystem compared to Google's open-source platform plays a significant role in legal outcomes.
02:06 App Store Strategies and Developer Treatment
– Google's Project Hug and financial incentives for developers to launch on the Play Store are discussed.
– Internal documents reveal strategies to maintain dominance, treating top developers differently, and preventing competition from alternative app stores.
03:04 Epic Games' Objectives and Tim Sweeney's Role
– Epic Games seeks fundamental changes in app store operations rather than monetary compensation.
– Tim Sweeney's bold approach against big tech, despite being an outlier, results in a legal victory and echoes Steve Jobs' quote on changing the world.
Made with HARPA AI
Epic didn't fail they fucked Google in the ass
man, google will join r/fuckepic after this xd
I have never thought ChatGPT as a black person
Its almost like these companies are in it for the money or something, sheesh! ๐
another smoking gun is that some chat logs literally went "hey remember to turn on disappearing messages." and it's the last message in the log. I believe the judge called it an open attack against anti-trust laws.
Tim Sweeney is a f****ng hero
So, essentially, this is a win for companies that take advantage of their consumers, like Apple.
Still waiting for them to put Unreal back up though ๐
oh hell no epic games is out to destroy more stuff
So what is this the 23rd time google has been to court for fraud ๐
Court to Apple: Are you being a monoply?
Apple: Oh no, everyone can choose to go elswhere.
Court: Can they go elshwere?
Apple: Oh no, there is nowhere else to go. We are the only store in our ecosystem. They could go ELSEWHERE if they dont like it here.
Court: Fair enough!