Epic Games to sue Google, Samsung over alleged app-store scheme
Summary
The “Fortnite” maker claims the tech giants colluded to place onerous restrictions on app stores created after Google lost an antitrust case.“Fortnite" maker Epic Games says it is suing Google and Samsung, alleging that the tech giants secretly colluded and imposed “onerous" restrictions on new third-party app stores.
Epic alleges that Google and Samsung made it too difficult for consumers to download app stores made by outside software developers, a new possibility after Google lost a previous antitrust lawsuit brought by the videogame company. The tech giants conspired to make a feature called Auto Blocker active by default on Samsung’s newest smartphones, according to Epic. The feature prevents users from downloading alternative app stores.
Turning off the feature and installing a third-party app store requires 21 steps, effectively making Google Play the only viable way to access apps on those devices, Epic says in a complaint it said it would file Monday in the Northern District of California.
“We’ve seen roughly 50% of users trying to install the Epic Games Store on Android give up before they’ve gotten it installed because of all the friction introduced," said Epic Chief Executive Tim Sweeney. “As sad as this is that there is yet more litigation, it seems like the necessary step."
Google has said in the past that the protections it has in place are meant to safeguard users from malicious apps and shield their privacy. Users are already able to download third-party apps outside the Google Play store, the company has said.
Google Play comes preloaded on all Android smartphones outside of China, and Samsung is the world’s largest Android smartphone maker. Samsung made 24% of all Android smartphones shipped last year, or 226.7 million units, according to research firm IDC.
Epic alleges in its complaint that Google and Samsung have had a close relationship for more than a decade and that Google has paid Samsung billions of dollars to favor Google Play over Samsung’s Galaxy app store.
Cary, N.C.-based Epic has been at war with Google and Apple since 2020 after it began encouraging “Fortnite" players to pay it directly for purchases of in-game items, rather than using systems developed by the tech giants. Google and Apple booted the game from their app stores in response, prompting Epic to file antitrust lawsuits against them.
Epic has since had mixed success in court. It won its case against Google but mostly lost its case against Apple. In each instance, Epic alleged that the companies used their dominant positions in the app-store market to squeeze excess profits from app developers. Alphabet’s Google has said it plans to appeal last year’s verdict.
Google and Apple have faced pushback over their app-store policies from regulators around the world. Earlier this year, a law took effect in the European Union that imposes rules on how a small number of tech giants must operate in the app ecosystem and other parts of the digital landscape. The legislation made it possible for Epic to bring “Fortnite" back to iPhones in Europe in August.
Sweeney founded Epic in 1991 from his parents’ basement at age 20, funding the company with $4,000 in personal savings. In addition to making “Fortnite," Epic is known for its Unreal Engine, a suite of game-development tools. Epic raised $2 billion in funding in 2022, valuing the company at $31.5 billion, up from $29 billion the previous year. Its investors include Disney, Sony Group and China’s Tencent.
Miles Kruppa contributed to this article.
Write to Sarah E. Needleman at Sarah.Needleman@wsj.com