Epic Games Inc. CEO Tim Sweeney testified in an antitrust lawsuit that Google's Android operating system is a "fake open platform." Sweeney, whose company makes the popular Fortnite game, took the witness stand in federal court in San Francisco on Monday to reinforce his claim that Google Play's current policy is illegal and allows Alphabet to maintain a monopoly on Android mobile app distribution.
The lawsuit began in 2020, when Epic sold "Fortnite" on the Android platform and sidestepped Google Play's billing system and the 30% revenue share it takes from app developers.
"We very much wanted to avoid that and do business directly with our customers," Sweeney told jurors.
Google denies abusing its market power. The jury trial began two weeks ago and is expected to conclude in early December. If Epic wins the case, Google could be forced to allow competing app marketplaces and payment methods in its App Store, which would threaten billions of dollars in Google Play revenue.
Sweeney testified in a similar antitrust lawsuit in 2021, accusing Apple of unfair and self-serving App Store policies. A federal judge in Oakland, California, ruled after a trial that Epic lost the lawsuit. An appeals court upheld the judge's decision, and Epic is now asking the U.S. Supreme Court to review it.
The Epic CEO testified that Google tried to strike a deal with his company, but he rebuffed it and continued to make "secret" deals with mobile device makers to maintain Google Play's dominance as the Android app market.
Sweeney said that in 2018, he believed that the Android system was not closed to developers, but later realized that Google's operating system was a "fake open platform" and was actually as closed as he found Apple's App Store in terms of its policies towards developers.
Sweeney told jurors that Epic is not seeking any monetary damages. When Epic's attorney asked him what he wanted the jury to rule, he said, "We want the jury to find that Google violated the law so that the court can stop Google from enforcing these policies."
During cross-examination, Google attorney Jonathan Kravis asked Sweeney questions to support the tech company's argument that the 30% cut is a standard fee that gaming platforms charge developers. Kravis got Sweeney to admit that by the end of 2020, Epic would pay a 30% cut to Sony Corp.'s PlayStation, Microsoft Corp.'s Xbox and Nintendo consoles, the three platforms on which Epic made $12 billion.
Kravis also prompted Sweeney to admit that none of the three console makers allow developers to let users download their apps directly from websites other than Google's Android operating system.
Epic's lawyer Gary Bornstein then asked Sweeney to clarify that Apple and Microsoft charge 0% to distribute Fortnite on PCs.
A Google spokeswoman said Epic has taken full advantage of Android's distribution options, allowing billions of Android users around the world to download "Fortnite" through the Samsung Galaxy Store or directly through their website.
"This kind of choice and flexibility is only possible on Android, the only major mobile platform that offers developers multiple ways to distribute their apps," she said.
Earlier in the day, Don Harrison, Google's head of global partnerships, revealed that Google had reached an agreement with Spotify to give the music streaming service generous discounts on developer fees: If users choose to use the music platform's payment system, Spotify will pay 0%; if users use the Google Play billing system to process transactions, Spotify will pay 4%.
As part of the deal, the companies agreed to invest $50 million each in a "success fund," and the music streaming app will promote "great experiences" on Android devices, including smartwatches, Harrison said.
By highlighting the Spotify deal, Epic is trying to show that Google selectively offers discounted prices to some companies through special partnerships, even though Google generally restricts developers from offering payment methods other than Google Play bills.
Harrison said the arrangements make sense because they ensure popular apps like Spotify are available on Android phones and Google Play and attract more users.
Sweeney revealed during his testimony in the Apple case that Epic's revenue in 2020 reached $5.1 billion. He founded Cary, N.C.-based Epic in 1991 while still a student at the University of Maryland. Since then, Epic has grown into one of the world's largest closely held video game companies, with Sweeney as the company's majority shareholder and China's Tencent Holdings holding a 40% stake.
Sweeney, whose net worth is estimated at $9.7 billion, has been a long-time advocate of the open software ecosystem. He was also known for his love of hiking and conservation work, including purchasing land to create a public park.
Epic has become a household name among video game enthusiasts since releasing the online battle game Fortnite in 2017, which has more than 400 million users. The company also offers a popular suite of software for making video games called Unreal Engine.
According to Bloomberg, the company laid off 870 employees in September to control costs amid layoffs across the technology industry.