Google is facing a new threat to its booming empire and a lucrative piece of its business. The court case is being handled by a jury of 10 people, deciding whether Google’s digital payment platform in the Play Store has been driving up prices for consumers and developers through monopolistic strategies. Get the latest updates and follow the story; connect with Xfinity support for plans.

The Standings of the Case:

According to a report by BBC News, the firm Epic Games has accused Google of using a monopoly scheme for Google Play payment options, charging a commission rate of whooping 30% from the in-app purchases.

In the past, Epic Games had failed to get a court ruling about the App Store using the same monopoly. It is now trying its case again with the Google Play Store.

Similarly to the case of Apple, Epic Games has stated again that Google is violating ‘the Federal Antimonopoly Law’ by requiring the developers of apps on the Google Play store to move the customer payments through Google, giving the internet giant a huge cut of their revenues.

Google has argued that there are other ways to download apps on Android phones. To address this case, Google’s vice president of government affairs and public policy Wilson White issued a statement saying “Epic just wants all the benefits of Android in Google Play without having to pay for them”.

Where is the Case Heading for Both Companies?

The trial standing for Epic has taken a fall. It looks like a dangerous bet for Epic now, especially after Match Group, the owner of dating apps Tinder and Hinge dropped out as a plaintiff with Epic over Google agreeing for its users to make in-app purchases through other payment channels.

However, Epic chief executive Tim Sweeny says, “We shall go to trial against Google alone” after Match dropped out of the case and rejected the “ruse” of “user choice of billing” in which Google controls, surveils, and taxes transaction between the users of the apps and the developers.

Epic has also said in a court filing that it not seeking monetary relief, but a court order for Google to change its rules for the developers of the apps, while it has also stated that, “Epic doesn’t want to seek a side deal or favorable treatment from google for itself”.

Google has however taken a stand for its position and stated that it had reduced the long-standing cut of 30 percent of in-app purchases through Google Play to 15 percent in 2021 for the first $1 million in annual revenue of the app developer.

With this according to Google, 99 percent of the Android developers that sell digital goods or services will see a 50 percent reduction in fees. Yet, Epic Games has decided to pursue the company with a lawsuit over allegations of holding a monopoly.

Google has contested the allegations from Epic and stated that Google Play faces competition from the Apple store. Moreover, they stated that the requirement of the cut of revenues from apps in distribution with Google Play is a legitimate business practice.

Some Background Details of the Case”

This lawsuit is not a new thing and was started in 2020 summer when Epic introduced in-app purchases for users to pay them directly, Apple and Google then booted Fortnite from their app stores for violating terms and Epic sued both companies with allegations of violating rules of the Sherman Antitrust Act.

The Apple case proceeded faster as a federal judge ruled in 2021 that Epic failed to provide the right evidence that stated Apple to a an illegal monopolist, though the judge did order Apple to add up more choices for in-app purchase payments and not steer customers to use only their platform for purchases.

What Will the Outcome Be?

Many like Rebecca Haw Allensworth, who is an associate dean for research at Vanderbilt Law School, have said that Epic is facing an uphill battle. However, it is said that this case may bring about some evolution in Google practices that have emerged to light –regardless of whatever the outcome will be for Epic.

She has said, “There is value in the case for the larger policy debate about how the antitrust policy should change, even if Epic loses”. This isn’t the first legal challenge for Google. In 2022, Google faced a lawsuit over revenue-sharing terms that seemed unfair to app developers.

Google then paid $90 million in settlement to U.S. app developers who made $2 million in annual revenue between the years 2016-2021. However, after this Google had reduced its cut in the revenue share from 30% to 15%.

The case and trial by Epic Games on Google will last until just before Christmas before the U.S. District Judge James Donato and testimony from the long-term CEO of the parent company Alphabet Inc. Let us see who takes the win but it looks like a grave situation for Epic Games.

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