Then U.S. states slap the tech with a 700-million-dollar fine for violation of antitrust laws.

The creator of the popular video game Fortnite, Epic Games, has won a legal challenge against Google in the United States. A California jury concluded earlier this month that Google had been operating an illegal monopoly and found the tech giant guilty on all counts. 

The Play Store, used by hundreds of millions of people for installing apps on smartphones powered by Google's Android software, was at the center of the legal dispute. Epic Games accused the tech giant of unlawfully dominating its app store over competitors. 

The lawsuit also challenged Google's transaction fees, reaching up to 30%, imposed on Android app developers and its bundling of the Play Store and billing service. The unanimous decision in favor of Epic Games could potentially grant developers more control over app distribution and revenue generation.

Epic Games CEO Tim Sweeney celebrates the victory over Google.

The court will now address the issue of compensation in January, but despite the legal setback Google remains committed to defending its business model and plans to appeal the verdict.

Epic Games operates its own app store on PC, competing with platforms like Steam.

The ruling may impact Google by potentially allowing more app stores on Android devices and reducing revenue from in-app purchases. Google's Play Store is one of the world's largest, directly competing with Apple's App Store, and the case questioned its dominance, as Android powers approximately 70% of global smartphones.

The legal battle also shed light on Google's commissions, with the verdict potentially leading to increased agency for developers in app distribution and monetization. Google contends that its commissions are competitive, offering additional benefits like security and protection against malware, while Epic Games argued that Google's practices suppress innovation and choice.

While Google faced previous antitrust cases, this ruling could reshape the Android app market and influence its revenue structure. Epic Games had previously filed a similar antitrust case against Apple in 2020, with a U.S. judge mostly ruling in favor of Apple in 2021.

States win antitrust lawsuit

In a related development, Google agreed to allow developers on its Play Store to offer direct payment options to users, settling thus an antitrust case brought by US states for a one-time payout of 700 million dollars. 

The settlement, which Epic Games described as mockery, aims to address concerns over competition and fees charged by Google, impacting its app store practices. 

The U.S. states attorneys general had initially asked for 10.5 billion dollars in antitrust damages.

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According to Epic Games, “consumers will continue to overpay for digital goods as a result of Google's imposition of supra-competitive 30% fees for Google Play Billing or 26% junk fees on top of payments Google isn't involved in processing.”

Developers will also continue to be restricted in how they distribute their apps, and developers who choose to use a third party payment option will be forced to use Google's deceptively-labeled "user choice billing" system rather than having creative freedom over the design of their payment systems, the games developer specified. 

Alphabet, Google’s parent company, has not commented specifically on Epic Games’ allegations.