On Dec. 11, Epic Games notched a historic victory against Google after a federal court jury found that the internet search giant illegally maintained monopolies over the distribution of apps on Android devices and for Android in-app billing services. The decision was announced at the end of a month-long trial, and the trial itself was a part of a three-and-a-half year-long legal battle between Google and Epic Games. Back in 2020, the video game juggernaut simultaneously filed lawsuits against Apple and Google, alleging that both companies operated their app stores like monopolies, exercised undue control over the distribution of mobile apps like Epic’s Fortnite, and unfairly penalized the creation and use of app markets and payment tools not owned by either Google or Apple. Epic alleged that these illegal practices allowed the corporations to tack a surcharge of up to 30% onto all purchases made through downloaded mobile apps. Considering the difficulties for private plaintiffs to pursue and prevail on antitrust claims under the Sherman Act, Section 2, Epic’s win against Google carries significant consequences for platform operators’ liability under antitrust laws.
The Goals of Antitrust Law
The Sherman Antitrust Act of 1890 is the primary legal framework regulating competition and preventing anti-competitive practices in the United States. The Supreme Court described its goal as a “comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade.” See Northern Pacific Railway v. United States, 365 U.S. 1 (1958). The court further explained that the Sherman Act rests on the premise that unrestricted competitive forces will result in the optimal allocation of economic resources, leading to the lowest prices, highest quality, and significant material progress.
