Google Gives Netflix, Spotify, Tinder Preferential Treatment, Says Amended Epic Games Class Action Lawsuit

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Epic Games Lawsuit Overview: 

• Who: Epic Games lodged an amended class action lawsuit against Google.
• Why: Epic Games claims that Google gives Netflix and other large app developers preferential treatment in an amended complaint accusing the tech giant of creating a monopoly with its Play Store policies. 
• Where: The class action lawsuit is pending in California federal court. 

Google has been taking a smaller percentage of Netflix, Spotify, and Tinder’s sales on its Google Play Store in order to appease the global streaming giant, a new complaint in the Epic Games class action lawsuit alleges.

The amended complaint was lodged Friday in the Epic Games lawsuit which alleges Google is monopolizing its power and committing antitrust violations. The new claims that the tech giant cut a deal for Netflix and other large app developers comes in the wake of a $100 million Apple settlement in a similar antitrust class action. 

Epic Games Lawsuit Accuses Google of Preferential Treatment

Epic Games, the maker of Fortnite, joins other consumers  in multidistrict litigation who want to represent a nationwide Class of consumers who bought an app on the Google Play Store or paid for in-app content from an app offered on the Google Play Store. 

Developers are normally required to give Google 30 percent of sales from apps bought on the Google Play Store, according to the class action lawsuit. The company also requires developers to use its billing system, Google Play Billing, in order to list applications on the Play Store.

The company that developed the Netflix app was unhappy with the billing arrangement set out by Google, claims the amended Epic Games lawsuit. 

“Apparently in an effort to ameliorate this displeasure, Google offered to take a significantly reduced revenue share percentage to Netflix. Not all developers, however, have met with Netflix’s success, even though many have sought to use their own payment systems,” states the class action lawsuit. 

Epic Games alleges other large subscription services — such as Spotify and Tinder — have sought to bypass the Google Play Billing setup without success. The company earned more than $21.5 in revenue from the Google Play Store in 2018, according to the class action lawsuit.

Small Developers Forced to Pay More, Claims Epic Games Lawsuit

Google has a monopoly in the app aftermarket because it has contractual restraints in place which more-or-less forces developers to list their apps on the Google Play Store if they want them to be available for purchase by Android users, the class action lawsuit alleges.

Plaintiffs claim Google uses this to their advantage by imposing prices that exceed competitive levels and excluding competition from being able to enter the market. While Google takes a 30 percent commission on all sales on the Play Store, according to the company’s own calculations, it would only need to take 6% in order to break even, points out the complaint. 

“Google’s internal documents recognize that its billing processing fee well exceeds the cost of providing those services, and that it could profitably dis-integrate the billing software such that developers would have choices—many of which are less expensive than Google’s,” states the amended Epic Games lawsuit. 

Giulianelli claims Google’s actions are in violation of federal antitrust laws and California’s Cartwright Act. She is demanding a jury trial and seeking treble damages for themself and all Class Members as well as enjoining Google from allegedly monopolizing the Android Application Distribution Market and engaging in anticompetitive conduct. 

Have you purchased an app from the Google Play Store and believe you are entitled to compensation? Let us know in the comments! 

The plaintiffs in the cases mentioned are represented by Paul J. Riehle of Faegre Drinker Biddle & Reath LLP, Christine A Varney, Katherine B. Forrest, Gary A. Bornstein, Timothy G. Cameron, Yonatan Even, Lauren A. Moskowitz, Justin C. Clarke, and M. Brent Byars of Cravath, Swaine & Moore LLP, David Azar, Peggy J. Wedgworth, Robert A. Wallner, Elizabeth McKenna, Blake Yagman, and Michael Acciavatti of Milberg Phillips Grossman LLP, and Karma M. Giulianneli, Glen E. Summers, and Jameson R. Jones of Bartlit Beck LLP. 

The consolidated Epic Games Lawsuit is In re: Google Play Consumer Antitrust Litigation., Case No. 3:21-md-02981-JD, in the U.S. District Court for the Northern District of California

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