As per court disclosures by Epic Games Inc., Google has committed to an $8 billion payment spread over four years to Samsung Electronics Co. This move is intended to secure default status for Google's apps on Samsung phones.
During Monday's trial in San Francisco, James Kolotouros, Google's Vice President for Partnerships, affirmed that Google and Samsung had agreed to share app store revenue, ensuring that Android mobile devices would have Google Play preinstalled. In 2020, Epic Games, the creator of the popular video game "Fortnite," filed a lawsuit against Google, alleging antitrust violations within the company's app marketplace.
As per Kolotouros's testimony, a significant portion—half or more—of Google Play's revenue is generated from Samsung devices. The trial focuses on the app store responsible for distributing apps for Google's Android software, dominating the smartphone market globally, excluding Apple devices. Epic's claim is that Google has established an unlawful monopoly over Android apps, aiming to increase profits through commissions ranging from 15 to 30 percent on in-app purchases.
Google asserts that its actions were aimed at competing with Apple and its app store, a claim contested by Epic attorney Lauren Moskowitz. Earlier in the trial, Google's attorney argued against the notion of the company being a monopoly, citing competition from entities like Apple.
In a September antitrust lawsuit, Google and Apple became intertwined, focusing on payments made by Google to Apple to ensure the Google search engine is the default on iPhones. Epic attorney Gary Bornstein previously accused Google of employing bullying and bribery tactics to stifle competition.
Initially proposing a $200 million payment over four years to Samsung to integrate the Galaxy app store into the Google Play Store, Google abandoned the idea. The current agreement with Samsung involves an $8 billion payment over four years. During testimony, Kolotouros suggested that without the pre-download of the Google-affiliated app store on phones, users might opt to switch to Apple and its iPhone.
The trial, located in the Northern District of California, is anticipated to conclude just before the year's end. Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.