Epic Games Files Another Lawsuit Against Google, Now Targeting Samsung Too
Epic Games is reigniting its legal battle against Google while bringing in a new player to the fray: Samsung. The game company accuses both tech titans of anti-competitive behavior. It had filed a complaint against Google back in 2020 that alleged restrictions and fees which the Google Play Store would put on payments inside applications. Samsung is charged with the same kind of behavior through its Galaxy Store.
Epic claims both companies are being monopolistic, which led to a reliance on those companies for their buying marketplaces instead of just producing great mobile apps that will spark creativity and competition within them.
Background: Epic’s Legal Battle with Google
Since 2020, Epic Games is engaged in an on-going court battle with Google over the removal of the latter’s popular game Fortnite from the Google Play Store. This was after the move by Epic to bypass Google’s in-app play-pay system, thereby evading the mandatory 30 percent charge on every transaction. In reaction, Google banned the game Fortnite from the Play Store, and Epic chose to sue.
In this scenario, Epic alleged antitrust violations in that these policies in the Play Store were limiting the ability of app developers to offer alternative payment systems and had harmed both the developers and consumers by artificially inflating prices. Google contended that without them, a safe app environment could not be maintained.
Even though the case against Google has remained on course, a new lawsuit from Epic adds Samsung to the mix by claiming it engaged in the same anti-competitive practice against Galaxy Store.
Samsung and New Lawsuit
And now, it’s Samsung in the spotlight: Epic supplemented its sprawling complaint against Samsung with a new addition to its legal challenge, accusing Samsung of policies all too similar to those for which Google is being castigated – refusing to let developers present app-buyers with options other than Samsung’s fee-gouging payment system, which charges eye-watering rates for in-app purchases.
The complaint even claims that Samsung’s dominance of the Android app ecosystem in its Galaxy Store has starved competition, leaving consumers to pay more for fewer choices and developers less opportunities. “The practices alleged here are abusive and exclusionary, stifling innovation and limiting developers’ choice of distribution channels, a condition the Sherman Act was designed to prevent,” Epic claims.
Some of the key accusations against Google and Samsung include the following:
The crux of the complaint filed by Epic in this case is related to allegations of a monopoly on the distribution of apps. Here are the essential details:
Restrictions on In-App Payments: Epic argues that Google and Samsung specifically enforced repressive rules forcing developers to use their payment systems, including exorbitant transaction fees of up to 30%. That would limit the ability of developers to issue the best value in price.
Anti-Competitive Practices: Epic asserts that by controlling the two relevant app stores on Android, Google and Samsung have created a system in which the availability of alternative app stores and alternative means of payment are, in fact barred.
Developer and Consumer Harm: Such policies, Epic claims, injure developers as they reduce possible revenue and harm consumers deprived of access to apps at lower prices.
Impact on the Mobile App Ecosystem
An expanded lawsuit by Epic could have strong implications for the overall mobile app ecosystem. If Epic wins, Google and Samsung will have to open up their platforms to third-party payment systems and alternate app stores. The way apps are distributed and monetized on Android devices will be compelled to change.
It could be cheaper fees and more control over their applications for developers. For users, it would mean having more alternatives of various applications, as well as cheaper purchase options within those applications. The legal battle is bound to be long-winded and messy since Google and Samsung are likely to aggressively battle out for their respective platforms.
Conclusion: A Watershed in the Mobile Applications Arena
A landmark case is currently being piled against the tech giants Google and Samsung by the epic with its new legal action; this rising conflict between app developers and tech giants regarding the approach of the former towards app store policies. As the case is heard, the verdict is going to shape the mobile app world dramatically and outline some new paths for app distribution and monetization. For now, both developers and consumers will be attentive to the proceedings of the case.