Clash of titans. Fortnite developer alleges violation of CCI’s remedial directions by Google

In fresh trouble for Google, the developer of the popular online video game ‘Fortnite’ and operator of the Epic Games Store, Epic Games has approached NCLAT alleging continued violation by Google of the remedial directions issued by CCI in the Android matter.

In an application filed before NCLAT, Epic Games has alleged that Google has failed to comply with the CCI’s remedial directions within the deadline imposed by Supreme Court in the Android case.

Also read:Android case: Setback to Google, Supreme Court refuses to modify its order

Already, Epic Games is locked in fierce legal battle with Google in the US Courts over allegation of anti competitive practices by the latter tech giant. Epic Games, which is now one of the largest video game and software development company in the world, has also initiated litigation against Google in other jurisdictions, namely Australia and the United Kingdom.

Besides game development, Epic Games had few years back ventured into digital storefronts with the launch of the Epic Games Store, a digital distribution platform that offers a curated selection of games, as well as a revenue-sharing model that gives a larger cut of the profits to game developers.

Also read

Android case: Supreme Court agrees to urgent listing of Google appeal on January 16

CCI ruling on Android is a breakthrough triumph for digital markets in India

Fines on Google are CCI’s thought out decision: Govt

CCI slaps ₹936-cr fine on Google, 2nd time in a week

CCI slaps ₹1,338-cr penalty on Google for abusing dominance

In its application before the National Company Law Appellate Tribunal (NCLAT), Epic Games has sought impleadment as a party-respondent in the Google appeal against CCI’s order in the Android case. 

Also read:Google Play Store policies case: CCI’s eight directions are ‘ex-ante’ in nature, antithetical to Competition Act, Google tells SC

It wants NCLAT to direct Google to purge its contempt and comply with the CCI’s Remedial Directions so as to host and permit download of competing app stores through the Google Play Store.

Bakari Middleton, Director of Global Public Policy, Epic Games said “The Competition Commission of India (CCI) took bold action to bring fairness, competition, and innovation to the mobile app ecosystem. We are seeking to join Indian developers in Court to support the CCI’s order that requires Google to allow competing for third-party app stores on the Google Play Store. Consumers should be able to choose how they access apps on their mobile devices and developers should be able to compete fairly in the mobile app ecosystem.”

Epic Games’ grudge

The main grudge of Epic Games is that Google is not allowing third-party App stores (like Epic Games App Store developed by Epic Games) to be distributed through Google’s Play Store.

Also, Google is insisting only on its own billing system to be used and refuses to accept third-party billing systems. Google is also not allowing sideloading of apps even after CCI has passed specific directions that sideloading must be allowed.

In the application, Epic Games has alleged that despite the expiry of the deadline to comply, users in India are unable to un-install apps pre-installed by Google from their android devices and are also unable to sideload apps outside the Play Store ecosystem unhindered. 

Also read:Google antitrust case. The quest for digitisation with equity

Referring to a recent blog of Google announcing certain updates to Android in India pursuant to directions of CCI, Epic Games alleged that the announcement is silent on allowing third-party app stores to be distributed on Google Play Store.

In the US, Epic Games sued Google in August 2020 over allegations of anti-competitive practices related to the Google Play Store. That case is ongoing and the outcome could have significant impact on the future of the App industry. 

Google’s monopoly

Epic Games claimed in that case that Google’s monopoly over the distribution of apps on Android devices, combined with the company’s 30 percent cut of app sales and in-app purchases, creates an unfair marketplace that stifles competition and innovation.

Epic Games specifically took issue with Google’s policy that requires app developers to use Google’s in-app payment system, rather than offering alternative payment options. 

It contended that Google’s policies restrict app developers from offering their products directly to consumers outside of the Google Play Store. This lawsuit was part of a larger legal battle between Epic Games and several tech majors, including Apple, over issues of competition and app store policies.

Also read:SC to Google: Ready for EU Android regime in India?

Epic Games is best known for creating the Unreal Engine, a game engine used by many developers to create high-quality games across various platforms. The company also develops and publishes its own video games, including the popular Fortnite Battle Royale game, as well as Gears of War and Infinity Blade.

In the financial year 2022, India’s gaming user base contributed to 15 billion downloads, making it the largest consumer of mobile games globally. Epic Games’ products are extremely popular in India with more than 9.5 million users. A large portion of the gaming market is still untapped by Epic Games as a result of Google’s continued anti-competitive practices and its abuse of dominance throughout the world (including in India), which this video game publisher contended in its application before NCLAT.

Also read:Google’s changes are piecemeal and not enough: MapmyIndia founder 

COMMENT NOW