(Bloomberg) -- Epic Games Inc. expanded its antitrust fight with Alphabet Inc.’s Google by accusing the tech giant of conspiring with Samsung Electronics Co. to block rival app marketplaces through default settings on mobile devices sold all over the world.
Epic, maker of the video game Fortnite, won a jury trial last year over claims that Google monopolized app distribution on Android devices, and a judge plans to order fixes to increase access and competition.
In a lawsuit filed Monday in San Francisco federal court, Epic alleges Google is now seeking to preserve its market dominance with the help of Samsung, the world’s largest maker of Android smartphones.
Samsung in July said all its phones will have a default setting to a program intended to prevent malicious software but also will block downloads of Android apps that compete with the Google Play Store and Samsung Galaxy Store, including those launched this year by Epic, Microsoft Corp. and others, according to the suit. Epic is seeking a halt to the alleged anticompetitive conduct and unspecified damages.
‘Security’ and ‘User Control’
Epic filed the new lawsuit to prevent Google from “negating the long overdue promise of competition in the Android app distribution market,” according to the complaint.
Samsung said it “actively fosters market competition” and “enhances consumer choice.” The features built into its devices “are designed in accordance with Samsung’s core principles of security, privacy and user control, and we remain fully committed to safeguarding users’ personal data. Users have the choice to disable Auto Blocker at any time,” a spokesperson said in a statement, referring to a security feature at the heart of the dispute.
“We plan to vigorously contest Epic Games’ baseless claims,” Samsung said.
A Google spokesperson called the suit “meritless” and said Android device makers are “free to take their own steps to keep their users safe and secure.”
Billions at Stake
A jury in December found Google Play fees and practices stifle competition. US District Judge James Donato, who presided at the trial, is expected to rule on changes to Google Play policies. His order could upend the mobile app economy and end up costing the technology giant billions of dollars in revenue.
During the trial last year, Epic presented evidence showing Google struck agreements with Samsung to maintain the dominance of the Play Store, which is included on the home screen of every Android phone outside of China. Epic says the Play Store accounts for about 80% of all Android apps downloaded, excluding China.
Epic claims Google is now working with Samsung to “undo” Donato’s remedies even before the judge rules.
“When faced with the threat of these remedies and the impending entry of meaningful competition from Epic, Microsoft and others, Google called on its long-time collaborator Samsung to defang these competitive threats and renew the moat protecting the Play Store from competition,” Epic said in the complaint.
Before July, Samsung’s Auto Blocker feature was an opt-in feature to protect against malicious software. Now it’s a default setting, leaving the Play Store and Samsung Galaxy Store as the only “authorized sources” for app downloads, Epic said.
“Auto Blocker is virtually guaranteed to entrench Google’s dominance over Android app distribution,” Epic claimed in the suit.
The case is Epic Games Inc. v. Samsung Electronics Co., 24-cv-06843, US District Court, Northern District of California (San Francisco).
(Adds Google comment in second section.)
©2024 Bloomberg L.P.