Epic Games files competition lawsuit against Google in the UK over Fortnite's ejection from Play Store
- Reference: 1610731148
- News link: https://www.theregister.co.uk/2021/01/15/epic_games_google_fortnite_competition_lawsuit/
- Source link:
The lawsuit [1]will allege that Google, holder of "a dominant position in the Android app distribution market", has unfairly restricted "competition from alternative app stores and other channels for the distribution of apps"
[2]PDF
.[3]
The legal action the games dev is taking in the UK is [4]similar to a US lawsuit it filed against Apple , which ejected Epic from its App Store in a commercial spat about cult game Fortnite .
The dispute is over exclusivity and how much of a cut Google takes from in-game microtransactions in Fortnite . As we reported [5]back in 2018 , Epic launched the Android version of Fortnite through its own website rather than the Google Play Store, the official app repository for Android. This initially deprived Google of its 30 per cent cut of Android app sale prices, though the app was later released through the Play Store.
[6]
At the time, Epic chief exec Tim Sweeney had a good old spleen-venting session about the "economics of the store ecosystem as it exists right now".
In August 2020, Epic introduced what its Competition Appeal Tribunal (CAT) claim described as "a direct payment option into the Fortnite app on the Google Play Store. This enabled consumers to pay Epic directly for in-app content instead of using Google's payment processor." Google responded by ejecting Fortnite from the Play Store altogether.
Epic is set to allege that Google is "using its market position to charge unfair prices for the distribution of apps via the Google Play Store and/or in relation to the purchase of digital in-app content within those apps," breaking section 18 of the Competition Act 1998 and Article 101 of the Treaty on the Functioning of the European Union.
It wants the CAT to order Google to restore Fortnite to the Play Store – and to tell the Chocolate Factory to "cease interfering with OEMs' ability freely to enter into agreements with Epic in respect of the pre-installation of the Epic Games Store and/or Epic's apps for Android mobile devices sold in the UK."
On top of that, Epic also wants "an order requiring Google to remove or amend the technical restrictions to ensure that consumers can directly download apps/app stores without obstruction, including ensuring that those apps/app stores are able to operate in the same way as the Google Play Store with respect to app installation, app updates, and access to operating system features," something likely to ring alarm bells among Android security watchers.
Before Epic can formally do any of that, however, it needs permission to serve the case on Google; as a foreign company headquartered outside the UK, Google has a chance to show that Epic's case should properly be brought in its homeland instead of in Britain.
Google sent us a statement: "The open Android ecosystem lets developers distribute apps through multiple app stores. For game developers who choose to use the Play Store, we have consistent policies that are fair to developers and keep the store safe for users. While Fortnite remains available on Android, we can no longer make it available on Play because it violates our policies. However, we welcome the opportunity to continue our discussions with Epic and bring Fortnite back to Google Play."
[7]
The Register will be reporting from the jurisdiction hearing, which is listed to take place on 21 January. ®
Get our [8]Tech Resources
[1] https://www.catribunal.org.uk/cases/13785720-epic-games-inc-and-others
[2] https://www.catribunal.org.uk/sites/default/files/2021-01/1378_Epic_Google_Notice__140121.pdf
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_datacentre/cloud&sz=300x250&tile=2&c=2YAIegwi5bM8RadFwA9K7KAAAAIM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://www.theregister.com/2020/08/14/epic_games_apple/
[5] https://www.theregister.com/2018/08/03/fortnite_security_fears/
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_datacentre/cloud&sz=300x250%7C300x252%7C300x600&tile=3&c=33YAIegwi5bM8RadFwA9K7KAAAAIM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dtop%26test%3D0
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_datacentre/cloud&sz=300x100%7C300x250%7C300x251&tile=4&c=44YAIegwi5bM8RadFwA9K7KAAAAIM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://whitepapers.theregister.com/
the irony of Epic complaining
Well, I suppose you might say if Epic are getting unfair treatment, and are having to file lawsuits as a result, then there are quite a lot of smaller operators also under the cosh. So even despite any total lack of sympathy for Epic, if they can succeed in this, then some good to more deserving games companies might result.
Give unto Alphabet what is Alphabet's...
...and add unto that what ever else Alphabet can grab. Yes, it's an abuse of power and should be fought. No, I don't think Epic has much of a chance by themselves. They need to team up other small players to stand a snowball's chance.
On a side note, I don't really understand why they put all of their eggs in the App Store baskets. They have a popular game that will run on a wide variety of operating systems (except Linux and *BSD) and could make money by releasing it through Steam or GoG or the Humble Store, etc. Maybe they feel they can make more from litigation than from widening their audience.
"it violates our policies"
One of those policies has been rumoured to be concealing the data on in-app transactions via App Store from the app developers. Thus, allegedly, Google gets the ability to monetise purchasers but the app developers never find out about the purchases.
Security fears, but not the ones you meant
"Epic also wants "an order requiring Google to remove or amend the technical restrictions to ensure that [...] those apps/app stores are able to operate in the same way as the Google Play Store with respect to app installation, app updates, and access to operating system features," something likely to ring alarm bells among Android security watchers."
Yes, it does ring alarm bells. The alarm is because Google has, to enhance its own store, poked holes in Android's security model for it to use. There's the anticompetitive aspect of that, which I'd expect to appear in investigations in the near future, but also the risk that someone could find a way to abuse those holes by impersonating Google Play. Unlike other ways to download apps, Google's doesn't have to negotiate to get the required permissions or prompt the user before making changes. Those prompts aren't just security theater or notices so users stay alert, they're also the best opportunity to spot something nefarious and prevent it getting started. A good solution to this is to lock down Android so that any method of installing apps has to go through rather than around the security model. This would apply to FDroid, Google, the manufacturer, the carrier, and everybody else.
They want a free ride
Give the game away for free, make all their profits in game using their own payments where they keep 100%, so Google and Apple make $0 for the billions in investment creating the platform and developing the distribution infrastructure.
Maybe 30% isn't the right answer in the long run, but with more and more apps moving to a freemium model with all profits made by advertising and in game purchases, these big companies want to cut Google and Apple out of the loop entirely. Well I guess with ad support apps Google gets a cut assuming they use some type of Google service for the ads, but Apple doesn't even have that.
Re: They want a free ride
So Epic are doing to Google what Google did to everybody else. Hopefully they'll all just eat each other
Everyone who Googles stuff, everyone who believes Chrome is the best browser, everyone who doesn't care, Google ownership of the worlds personal information is down to you. Your apathy is overwhealming.
Al those who hated MS, we the reason we only have two ring fenced mobile phone OSes is down to you, you know MS stuffed up but they have been battered over the years and might have been more approachable, now even they are in bed with Google.
Our only hope is that either the EU or the US (never going to happen) enforce the break up of Google.
Regardless of what epic has or hasn't done with other people, I actually think they have a point here what is the justification for apple or google's 30% cut on everything sold via the play store and then microtransactions for digital content. Appreciate they are processing payments for the developers, appreciate they are hosting an infrastructure as well to download and keep upto date the apps and content. However 30% seems a little high for what is being provided especially given the lack of any real competition. For micropayments for digital content it has even less basis as its not like they hosting or providing updates for books purchased via kindle, or providing anything other than payment processing for game microtransactions
Ah, the irony of Epic complaining about exclusivity and restricting competition.