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Epic Games Defeats Google in Antitrust Trial Victory

December 19, 2023

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 Timothy G. Cameron, 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.).

Related Practices & Industries

  • Litigation
  • Antitrust
  • Trials
  • Emerging and Founder-Led Companies
  • Consumer Products and Services
  • Media and Entertainment
  • Technology

People

Photo
Name
Gary A. Bornstein
Title
Litigation
Title
Partner
Email
gbornstein@cravath.com
Phone
+1-212-474-1084
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    Education

    • J.D., 1997, Harvard Law School
      magna cum laude
    • B.A., 1994, Yale College
      Phi Beta Kappa, magna cum laude

    Admitted In

    • New York
    Photo
    Name
    Yonatan Even
    Title
    Litigation
    Title
    Partner
    Email
    yeven@cravath.com
    Phone
    +1-212-474-1958
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      Education

      • J.S.D., 2009, Columbia Law School
      • LL.M., 2004, Columbia Law School
        James Kent Scholar
      • LL.B., 1999, Tel Aviv University
        magna cum laude

      Admitted In

      • New York
      Photo
      Name
      Lauren A. Moskowitz
      Title
      Litigation
      Title
      Partner
      Email
      lmoskowitz@cravath.com
      Phone
      +1-212-474-1648
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        Education

        • J.D., 2005, Fordham University School of Law
          magna cum laude
        • B.A., 2002, Cornell University

        Admitted In

        • New York
        Photo
        Name
        Timothy G. Cameron
        Title
        Litigation
        Title
        Partner
        Email
        tcameron@cravath.com
        Phone
        +1-212-474-1120
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          Education

          • LL.M., 1998, University of Chicago Law School
          • M.ComLaw, 1997, Auckland University - Faculty of Law
            First Class Honors
          • LL.B., 1994, Auckland University - Faculty of Law
          • B.Com., 1994, Auckland University - Faculty of Law

          Admitted In

          • New York
          Photo
          Name
          Justin C. Clarke
          Title
          Litigation
          Title
          Partner
          Email
          jcclarke@cravath.com
          Phone
          +1-212-474-1184
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            Education

            • J.D., 2011, Columbia Law School
              James Kent Scholar; Harlan Fiske Stone Scholar
            • A.B., 2004, Bowdoin College

            Admitted In

            • New York
            Photo
            Name
            Michael J. Zaken
            Title
            Litigation
            Title
            Partner
            Email
            mzaken@cravath.com
            Phone
            +1-212-474-1888
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              Education

              • J.D., 2014, Columbia Law School
                James Kent Scholar, Harlan Fiske Stone Scholar
              • B.A., 2011, Columbia College
                cum laude

              Admitted In

              • New York
              Photo
              Name
              Christine A. Varney
              Title
              Litigation
              Title
              Partner
              Email
              cvarney@cravath.com
              Phone
              +1-212-474-1140
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                Education

                • J.D., 1986, Georgetown University Law Center
                • M.P.A., 1982, Syracuse University
                • B.A., 1977, State University of New York, Albany

                Admitted In

                • New York
                • District of Columbia
                Photo
                Name
                Wes Earnhardt
                Title
                Litigation
                Title
                Partner
                Email
                wearnhardt@cravath.com
                Phone
                +1-212-474-1138
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                  Education

                  • J.D., 2004, University of North Carolina School of Law
                  • B.A., 2000, University of North Carolina at Chapel Hill
                    Phi Beta Kappa

                  Admitted In

                  • New York
                  Photo
                  Name
                  M. Brent Byars
                  Title
                  Litigation
                  Title
                  Senior Attorney
                  Email
                  mbyars@cravath.com
                  Phone
                  +1-212-474-1104
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                    Education

                    • J.D., 2009, Harvard Law School
                      cum laude
                    • M.A., 2006, Emory University
                    • B.A., 2004, Davidson College
                      Phi Beta Kappa, magna cum laude

                    Admitted In

                    • New York

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