Epic Games, Inc. v. Google LLC

District Court, N.D. California·Decided July 3, 2024·No. 3:20-cv-05671·Unknown

Opinion

IN RE GOOGLE PLAY STORE MDL Case No. 21-md-02981-JD ANTITRUST LITIGATION Member Case No. 20-cv-05671-JD ORDER RE GOOGLE’S RENEWED MATTER OF LAW OR FOR NEW

After 15 days of trial, a jury found in favor of plaintiff Epic Games Inc. on its antitrust claims against Google. See Dkt. No. 866.1 Google had moved for judgment as a matter of law at an appropriate stage of the trial, which the Court denied. Dkt. Nos. 825, 831. Google renewed the motion post-verdict under Federal Rule of Civil Procedure 50(b), with a motion in the alternative for a new trial under Rule 59. Dkt. No. 925. The Court denied both motions. Dkt. No. 951. This order provides a detailed explanation for that decision. The Court presented the background of this multidistrict antitrust litigation in other orders. See, e.g., Dkt. Nos. 383, 588. In pertinent part, Epic is a well-known video game and software developer, and its apps include Fortnite, a popular online game. Fortnite can be played on a variety of consoles and devices, including smartphones running the Android mobile operating system. Epic distributed a Fortnite Android app through the Google Play Store for a handful of months starting in April 2020, until Epic’s relationship with Google broke down in August 2020. A particular sticking point was Epic’s objection to Google’s requirement that Epic use Google’s billing system and pay Google a 30% fee on all in-app purchases made by Fortnite users. Epic wanted to use its own in-app payment solution and not pay Google a 30% cut, which Google refused to allow. Epic then deployed a “hotfix,” which was in effect a covert app update that allowed Fortnite users to use Epic’s payment system. Google responded by removing Fortnite from the Google Play Store. On the day that Fortnite was removed from the Google Play Store, Epic filed this lawsuit against Google LLC and certain of its affiliates alleging that Google had engaged in anticompetitive conduct in violation of the antitrust laws in connection with the Google Play Store. Dkt. No. 1. As alleged in its second amended complaint (SAC), Epic presented claims under Sections 1 and 2 of the Sherman Act, 15 U.S.C. §§ 1, 2; the California Cartwright Act, Cal. Bus. & Prof. Code § 16700 et seq.; and the California Unfair Competition Law (UCL), Cal. Bus. & Prof. Code § 17200 et seq. Dkt. No. 378. Epic sought injunctive relief only, and no monetary damages. Id. Google filed counterclaims against Epic, including for breach of the Google Play Developer Distribution Agreement (DDA). Dkt. No. 386. Epic’s lawsuit was consolidated into a multidistrict litigation action along with similar antitrust complaints filed by Google Play Store users and developers, and the attorneys general of many states. A substantial period of litigation ensued for all of the member cases, and several important issues were resolved in the pretrial stage. One was a determination that Google had willfully failed to preserve relevant, substantive business communications that were made by employees on the Google Chat system. This determination required an extensive inquiry by the Court that culminated in an evidentiary hearing featuring witness testimony and documents, and extensive findings of fact. See Dkt. No. 469. Testimony at trial adduced even more troubling evidence of improper assertions of the attorney-client privilege by Google’s employees, including its CEO, to keep communications secret, and a widespread understanding within the company that discussions of sensitive topics should be done in a way that evaded preservation. See, e.g., Trial Tr. at 964:21-23, 991:16-992:8, 1075:20-1076:12, 1321:17-24.2 Another important pretrial determination was whether Google could evade a jury altogether by asking for a bench trial at the very last moment. The Court concluded, based on Google’s own conduct, that it had consented to a jury trial. See id. at 6:13-7:16. In time, the other cases went into settlement proceedings. Epic’s case was tried by a jury of nine citizens in November and December 2023. The parties put on forty-five witnesses, including nine expert witnesses, over the course of fifteen days of testimony. More than three hundred documents were admitted into evidence. See Dkt. Nos. 622, 623, 624. The final jury instructions totaled fifty-five pages. Dkt. No. 850. The instructions were based on extensive discussions with, and submissions by, the parties. See, e.g., Dkt. Nos. 487, 528, 554, 564, 847, 848, 849. At the conclusion of deliberations, the jury returned a unanimous verdict in favor of Epic. Dkt. No. 866. For the monopolization claim under Section 2 of the Sherman Act, the jury found that Epic had proved two relevant product markets: a market for the distribution of Android apps, and for Android in-app billing services for digital goods and services transactions. The jury also found that Epic had proved for both of these markets that the geographic scope was worldwide excluding China. The jury further concluded that Epic had proved that Google willfully acquired or maintained monopoly power by engaging in anticompetitive conduct in each of the product markets, and that Epic had proved it was injured as a result of Google’s violation of the antitrust laws. Id. at 1-4. For the unlawful restraint of trade claim under Section 1 of the Sherman Act and California state law, the jury found that Epic had proved that Google entered into one or more agreements that unreasonably restrained trade in the same two product markets as for the

Free access — add to your briefcase to read the full text and ask questions with AI

Epic Games, Inc. v. Google LLC, (N.D. Cal. 2024).

Epic Games, Inc. v. Google LLC (Epic Games, Inc. v. Google LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Cone v. West Virginia Pulp & Paper Co.
330 U.S. 212 (Supreme Court, 1947)
Jefferson Parish Hospital District No. 2 v. Hyde
466 U.S. 2 (Supreme Court, 1984)
David Pals v. Schepel Buick & Gmc Truck, Inc.
220 F.3d 495 (Seventh Circuit, 2000)
H.N. Dang v. Gilbert Cross
422 F.3d 800 (Ninth Circuit, 2005)
Lakeside-Scott v. Multnomah County
556 F.3d 797 (Ninth Circuit, 2009)
Tracy Dunlap v. Liberty Natural Products
878 F.3d 794 (Ninth Circuit, 2017)