Epic Games Defeats Google in Antitrust Trial Victory

On December 11, 2023, a jury unanimously ruled in favor of Cravath client Epic Games (“Epic”) on all counts in its closely watched antitrust case against Google in the U.S. District Court for the Northern District of California, determining—after a multiweek trial—that Google has engaged in anticompetitive behavior in the distribution of mobile apps and in the handling of in‑app payments.

Epic filed the action against Google in August 2020, alleging Google monopolizes and imposes unlawful restraints on app distribution by restricting the downloading of apps from sources other than its own digital storefront, the Google Play Store. The action further asserted that Google maintains a monopoly on in‑app payment solutions and engaged in unlawful tying by conditioning developers’ access to the Play Store on the exclusive use of Google’s own in‑app payment tools for digital content. Epic brought claims against Google for violations of the Sherman Act and California’s Cartwright Act and Unfair Competition law, and sought purely injunctive relief to allow alternative options for apps to be downloaded and for payments to be handled, thereby enabling fair competition in these markets.

The trial commenced in San Francisco in November 2023. In his opening statement, Cravath partner Gary A. Bornstein described Google as employing a “bribe or block” strategy to stifle competition. “If competition were a race,” he noted, “Google gets to run on a nice smooth track and everyone else has to run on quicksand.”

During trial, the jury heard testimony from 36 fact witnesses and nine expert witnesses. Led by Gary and partners Yonatan Even and Lauren A. Moskowitz, the Cravath trial team presented testimony that included Epic CEO Tim Sweeney, the head of the Epic Games Store and multiple experts. The Cravath team also cross‑examined numerous Google executives, including CEO Sundar Pichai; its head of partnerships; its head of platforms and ecosystems; its vice president of engineering, security and privacy; and its chief legal officer.

The Cravath team worked to establish that Google’s anticompetitive behavior included paying competitors to prevent the creation of alternative app stores, blocking other competing stores from being able to attract users and developers and prohibiting developers from using alternative payment systems for the sale of digital content, all while taking up to 30% of in‑app digital content purchases.

During closing, Gary emphasized Epic’s three claims against Google: monopolization, unreasonable restraints of trade and an illegal tie between its Google Play app store and Google Play Billing payment services. “The trial has shone a very bright light on what Google has done to impair the competition,” he said. In a statement, Epic said the verdict “is a win for all app developers and consumers around the world.”

In addition to partners Gary A. Bornstein, Yonatan Even and Lauren A. Moskowitz, the Cravath trial team included partners Justin C. Clarke and Michael J. Zaken; senior attorney Brent Byars; and associates Eric J. Zepp, Allison C. Tilden, Jason B. Koffler, Benjamin M. Wylly, Andrew Wiktor, Daniel L. Ottaunick, Micaela J. Pina, Catherine G. Sheets, Malikah I. Williams, Lauren N. Reisig, Charles Bloom, Brent E. Bomkamp, Ana C. Sewell, Ashley C. Ulrich and Anissa L. Badea. Partners Christine A. Varney and Wes Earnhardt were also critical members of the team.

The case is Epic Games, Inc. v. Google LLC, et al., No. 20‑cv‑05671 (N.D. Cal.).