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<\/p>\nThe verdict in the Google versus Epic Games antitrust case in the US has spread cheer among the Indian gaming and app developers.<\/p>\n
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Ending a three-year legal battle, the San Francisco jury found that Google turned its Play app store and billing service into an illegal monopoly.<\/p>\n
American video game maker Epic Games, best known for Fortnite, had sued Google in 2020.<\/p>\n
The Mountain View-headquartered search engine major has faced backlash in India as well.<\/p>\n
Last October, the Competition Commission of India (CCI) had imposed a penalty of Rs 1,338 crore on Google for abusing its dominant position in multiple markets in the Android mobile device ecosystem.<\/p>\n
It had also issued a cease and desist order.<\/p>\n
In the latest case, the jury also observed that the company hurt competition by tying Google Play store with its payment services.<\/p>\n
The details about Epic’s win have not been made public yet.<\/p>\n
But analysts believe that if this verdict is implemented, app developers may have a greater say in the way they get charged on the Play Store.<\/p>\n
“We plan to challenge the verdict.<\/p>\n
“Android and Google Play provide more choice and openness than any other major mobile platform.<\/p>\n
“The trial made it clear that we compete fiercely with Apple and its App Store, as well as app stores on Android devices and gaming consoles.<\/p>\n
“We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem.” said Wilson White, VP, Government Affairs & Public Policy, Google.<\/p>\n
There’s a significant interest in the case in India, where a section of developers tried to battle Google for reduction in service fees.<\/p>\n
“The verdict in the Epic vs Google case marks an epic win (pun intended) for app developers worldwide.<\/p>\n
“The unanimous jury decision once again exposes Google’s illicit practices on a global scale,’’ said Snehil Khanor, co-founder and CEO of TrulyMadly.<\/p>\n
Expecting positive ripple effects both in India and globally, Khanor said that the verdict reinforced the need for a level-playing field and empowering developers to choose billing systems that align with their preferences and business strategies.<\/p>\n
The Alliance of Digital India Foundation (ADIF), in a statement, said: “The recent resolution of the antitrust case between Epic Games and Google Play store marks a noteworthy development. ADIF has been working assiduously against the exorbitant commissions charged by Google for in-app purchases.”<\/p>\n
The Foundation pointed out that India has been actively fighting against dominant entities resorting to unfair and discriminatory practices, especially in the last few years.<\/p>\n
In February, Google made user choice billing available to all apps and games.<\/p>\n
Through user choice billing, developers can offer users the option to choose an alternative billing system alongside Google Play’s billing system when purchasing in-app digital content.<\/p>\n
However, the complaint of Indian developers as well as Epic Games has been that Google Play store also charges a service fee that is as high as 30 per cent.<\/p>\n
Google has denied this.<\/p>\n
In a blog, Google said: “Our service fees only apply when a developer sells digital goods or services in their app.<\/p>\n
“Today, only 3 per cent of developers in India sell digital goods or services and therefore would need to pay a service fee.<\/p>\n
“For the vast majority of developers, our fees are 15 per cent or less — the lowest rates of any major app store — due to the range of pricing programs Google Play offers.”<\/p>\n
According to Google estimates, less than 60 of the over 200,000 Indian developers on Google Play currently could pay a service fee of above 15 per cent.<\/p>\n
“And this fee is further reduced by 4 per cent if a user pays through an alternative billing system to fairly reflect that Google Play’s billing system has not been used,” says the Google blog.<\/p>\n
Meanwhile, domestic players like PhonePe have been gearing to launch their offering in the app store segment.<\/p>\n
Sameer Nigam, co-founder and CEO, PhonePe, had during the launch of Indus Appstore said that India is too large a market to have just one app store.<\/p>\n
Indus Appstore, which will be a competition to Google Play Store, is set to be launched by early next year, according to sources.<\/p>\n
In a recent announcement, Indus Appstore had said that it is committed to supporting developers and hence there will be zero commissions on in-app payments—a sharp contrast to other app stores charging hefty fees ranging from 15-30 per cent.<\/p>\n