Full explanation of the Epic Games vs Google antitrust lawsuit. Find out what the future will look like for mobile and game developers after this shocking new precedent was set. 

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🔗 Resources

Epic vs Apple Verdict https://www.theverge.com/23994174/epic-google-trial-jury-verdict-monopoly-google-play
C2PA Proposal https://youtu.be/-Bdb2KOb_zI
Unreal in 100 Seconds https://youtu.be/DXDe-2BC4cE

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🔖 Topics Covered

- Changes in the Android Ecosystem
- What's new for mobile developers in 2023
- Why did google lose against Epic Games?
- Why did Epic Games lose against Apple?
- Is epic games creator of Unreal Engine?
- Trends in mobile game development
2024-02-04T04:58:38.444Z
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2-general-nova
2024-01-09.29447
30089e05-99d1-4376-b32e-c263170674af
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67875a7f-c9c4-48a0-aa55-5bdb8a91c34a
deprecated
It's a modern day David versus Goliath story.
The $1,000,000,000 Epic Games picks a fight with the $1,000,000,000 Google, and comes out with a decisive legal victory.
But the prize is not money.
It's much bigger than that, and could dramatically change the mobile app development landscape as we know it.
It is December of 2023, and you're watching the code report.
Programmers make for terrible lawyers, and I'm a programmer.
But luckily, I have a lawyer friend who helped me analyze this case.
So Epic Games makes video games may have heard of like Fortnite, in addition to the unreal game engine.
Now on the Google Play Store, apps that have over $1,000,000 in revenue are required to pay a 30% cut for any in app purchases.
Simply put, Epic Games thinks these fees are exorbitant and unfair.
It believes Google holds an illegal monopoly with the Play Store and Google Play Billing.
What's interesting though is that Android is an open source platform based on Linux, and there are alternative app stores out there where you can distribute Android apps without Google, although vast majority of consumers use the Play Store.
In addition, it's not illegal to have a monopoly.
Like, you can't be penalized just for building a good product and being successful.
Poll.
However, a monopoly becomes illegal when you exploit the market, either through price discrimination, exclusive dealings, or tying contracts.
Now Epic Games has also been fighting a similar battle with the Apple App Store, but it mostly lost that case, and that ruling was recently held up after they appealed.
I or no bell.
But yesterday, Epic Games won a unanimous decision, where the jury said that Google engages in anti competitive behavior.
Google will appeal, but why did Apple win and Google lose?
Well, that's That's where things get interesting.
Apple has an entirely closed off system, a walled garden where iOS is not open source, and they don't allow alternative app stores for iOS devices.
You can think of Apple Phones and app store as all part of the same product, and developers have nowhere else to go.
Everybody has to think different in the exact same way.
Now that feels more unfair compared to Google's ecosystem, where or the operating system is open source, there are multiple app stores out there, and Google even has an alternative in app purchases program, although it's currently just a pilot program.
Now In Apple's case, developers have nowhere to go, but in Google's case, they need to convince developers that the Google Play Store is their best option.
One thing we learned about in the case is Project Hug.
Give me a hug.
No way.
Come here.
I'm not coming over there.
Let's go.
Forget it.
A project where Google offered game developers tens of 1,000,000 of dollars and even offered Epic Games a $147,000,000 to launch Fortnite on Google Play.
The thing is though, these payments didn't block a developer from launching on another platform as long as they launched on Google Play the same day.
So it doesn't really look like they're trying to block other app stores, except there's also these internal documents like this one where a Play Store executive brags about how they got Riot Games, creator of League of Legends, to stop element on its own app store.
Game developers are absolute cash cows for the app stores, and the company bragged internally about how it's one of the most profitable businesses in the world.
But these cash cows can't be milked if they take their games to their own platforms.
As a small time developer, it's important to understand that the top 1% gets treated differently.
Way.
Companies like Spotify can bypass app store fees, and Netflix was offered a 10% cut.
In addition, Google had agreements with Chinese m's to give manufacturers a cut of Play Store fees to prevent them from pre installing other app stores.
And for all these reasons, the jury decided that Google did a big no no.
I guess.
The lesson to be learned here is that if you want to dominate tech, build a fully closed off system like Apple, and don't try to build an open system like Google where you need secret deals to dominate it.
Now The next step is for Epic and Google to get back together in January to remedy the lawsuit.
Epic doesn't want money though.
It wants fundamental changes to the way the app stores work, which is likely good news for all the mobile developers out there.
But this is all one guy's fault, Tim Sweeney.
At one point, Google even considered taking a large stake in Epic games, but then decided against it once they found out that Tim Sweeney was the controlling shareholder, because he's a bit of an outlier GigaChad as far as tech billionaires go.
And the fact that he had the balls to go up against Big Tech and actually won, ironically embodies this quote from Steve Jobs.
The ones who or crazy enough to think they can change the world are the ones who do.
This has been the Code Report.
Thanks for watching, and I will see you in the next one.

Speaker 0: It's a modern day David versus Goliath story. The $1,000,000,000 Epic Games picks a fight with the $1,000,000,000 Google, and comes out with a decisive legal victory. But the prize is not money. It's much bigger than that, and could dramatically change the mobile app development landscape as we know it. It is December of 2023, and you're watching the code report.

Programmers make for terrible lawyers, and I'm a programmer. But luckily, I have a lawyer friend who helped me analyze this case. So Epic Games makes video games may have heard of like Fortnite, in addition to the unreal game engine. Now on the Google Play Store, apps that have over $1,000,000 in revenue are required to pay a 30% cut for any in app purchases. Simply put, Epic Games thinks these fees are exorbitant and unfair.

It believes Google holds an illegal monopoly with the Play Store and Google Play Billing. What's interesting though is that Android is an open source platform based on Linux, and there are alternative app stores out there where you can distribute Android apps without Google, although vast majority of consumers use the Play Store. In addition, it's not illegal to have a monopoly. Like, you can't be penalized just for building a good product and being successful. Poll.

However, a monopoly becomes illegal when you exploit the market, either through price discrimination, exclusive dealings, or tying contracts. Now Epic Games has also been fighting a similar battle with the Apple App Store, but it mostly lost that case, and that ruling was recently held up after they appealed. I or no bell. But yesterday, Epic Games won a unanimous decision, where the jury said that Google engages in anti competitive behavior. Google will appeal, but why did Apple win and Google lose?

Well, that's That's where things get interesting. Apple has an entirely closed off system, a walled garden where iOS is not open source, and they don't allow alternative app stores for iOS devices. You can think of Apple Phones and app store as all part of the same product, and developers have nowhere else to go. Everybody has to think different in the exact same way. Now that feels more unfair compared to Google's ecosystem, where or the operating system is open source, there are multiple app stores out there, and Google even has an alternative in app purchases program, although it's currently just a pilot program.

Now In Apple's case, developers have nowhere to go, but in Google's case, they need to convince developers that the Google Play Store is their best option. One thing we learned about in the case is Project Hug. Give me a hug. No way. Come here.

I'm not coming over there. Let's go. Forget it. A project where Google offered game developers tens of 1,000,000 of dollars and even offered Epic Games a $147,000,000 to launch Fortnite on Google Play. The thing is though, these payments didn't block a developer from launching on another platform as long as they launched on Google Play the same day.

So it doesn't really look like they're trying to block other app stores, except there's also these internal documents like this one where a Play Store executive brags about how they got Riot Games, creator of League of Legends, to stop element on its own app store. Game developers are absolute cash cows for the app stores, and the company bragged internally about how it's one of the most profitable businesses in the world. But these cash cows can't be milked if they take their games to their own platforms. As a small time developer, it's important to understand that the top 1% gets treated differently. Way.

Companies like Spotify can bypass app store fees, and Netflix was offered a 10% cut. In addition, Google had agreements with Chinese m's to give manufacturers a cut of Play Store fees to prevent them from pre installing other app stores. And for all these reasons, the jury decided that Google did a big no no. I guess. The lesson to be learned here is that if you want to dominate tech, build a fully closed off system like Apple, and don't try to build an open system like Google where you need secret deals to dominate it.

Now The next step is for Epic and Google to get back together in January to remedy the lawsuit. Epic doesn't want money though. It wants fundamental changes to the way the app stores work, which is likely good news for all the mobile developers out there. But this is all one guy's fault, Tim Sweeney. At one point, Google even considered taking a large stake in Epic games, but then decided against it once they found out that Tim Sweeney was the controlling shareholder, because he's a bit of an outlier GigaChad as far as tech billionaires go.

And the fact that he had the balls to go up against Big Tech and actually won, ironically embodies this quote from Steve Jobs. The ones who or crazy enough to think they can change the world are the ones who do. This has been the Code Report. Thanks for watching, and I will see you in the next one.
It's a modern day David versus Goliath story. The $1,000,000,000 Epic Games picks a fight with the $1,000,000,000 Google, and comes out with a decisive legal victory. But the prize is not money. It's much bigger than that, and could dramatically change the mobile app development landscape as we know it. It is December of 2023, and you're watching the code report. Programmers make for terrible lawyers, and I'm a programmer. But luckily, I have a lawyer friend who helped me analyze this case. So Epic Games makes video games may have heard of like Fortnite, in addition to the unreal game engine. Now on the Google Play Store, apps that have over $1,000,000 in revenue are required to pay a 30% cut for any in app purchases. Simply put, Epic Games thinks these fees are exorbitant and unfair. It believes Google holds an illegal monopoly with the Play Store and Google Play Billing. What's interesting though is that Android is an open source platform based on Linux, and there are alternative app stores out there where you can distribute Android apps without Google, although vast majority of consumers use the Play Store. In addition, it's not illegal to have a monopoly. Like, you can't be penalized just for building a good product and being successful. Poll. However, a monopoly becomes illegal when you exploit the market, either through price discrimination, exclusive dealings, or tying contracts. Now Epic Games has also been fighting a similar battle with the Apple App Store, but it mostly lost that case, and that ruling was recently held up after they appealed. I or no bell. But yesterday, Epic Games won a unanimous decision, where the jury said that Google engages in anti competitive behavior. Google will appeal, but why did Apple win and Google lose? Well, that's That's where things get interesting. Apple has an entirely closed off system, a walled garden where iOS is not open source, and they don't allow alternative app stores for iOS devices. You can think of Apple Phones and app store as all part of the same product, and developers have nowhere else to go. Everybody has to think different in the exact same way. Now that feels more unfair compared to Google's ecosystem, where or the operating system is open source, there are multiple app stores out there, and Google even has an alternative in app purchases program, although it's currently just a pilot program. Now In Apple's case, developers have nowhere to go, but in Google's case, they need to convince developers that the Google Play Store is their best option. One thing we learned about in the case is Project Hug. Give me a hug. No way. Come here. I'm not coming over there.
video gaming
games
apple
google
gambling
software development
revenue
amazon
copyright licenses
Let's go.
Forget it. A project where Google offered game developers tens of 1,000,000 of dollars and even offered Epic Games a $147,000,000 to launch Fortnite on Google Play. The thing is though, these payments didn't block a developer from launching on another platform as long as they launched on Google Play the same day. So it doesn't really look like they're trying to block other app stores, except there's also these internal documents like this one where a Play Store executive brags about how they got Riot Games, creator of League of Legends, to stop element on its own app store. Game developers are absolute cash cows for the app stores, and the company bragged internally about how it's one of the most profitable businesses in the world. But these cash cows can't be milked if they take their games to their own platforms. As a small time developer, it's important to understand that the top 1% gets treated differently. Way. Companies like Spotify can bypass app store fees, and Netflix was offered a 10% cut. In addition, Google had agreements with Chinese m's to give manufacturers a cut of Play Store fees to prevent them from pre installing other app stores. And for all these reasons, the jury decided that Google did a big no no. I guess. The lesson to be learned here is that if you want to dominate tech, build a fully closed off system like Apple, and don't try to build an open system like Google where you need secret deals to dominate it. Now The next step is for Epic and Google to get back together in January to remedy the lawsuit. Epic doesn't want money though. It wants fundamental changes to the way the app stores work, which is likely good news for all the mobile developers out there. But this is all one guy's fault, Tim Sweeney. At one point, Google even considered taking a large stake in Epic games, but then decided against it once they found out that Tim Sweeney was the controlling shareholder, because he's a bit of an outlier GigaChad as far as tech billionaires go.
games
google
netflix
finance
industry
business
intellectual property
And the fact that he had the balls to go up against Big Tech and actually won, ironically embodies this quote from Steve Jobs. The ones who or crazy enough to think they can change the world are the ones who do. This has been the Code Report. Thanks for watching, and I will see you in the next one.
It's a modern day David versus Goliath story. The $1,000,000,000 Epic Games picks a fight with the $1,000,000,000 Google, and comes out with a decisive legal victory. But the prize is not money. It's much bigger than that, and could dramatically change the mobile app development landscape as we know it. It is December of 2023, and you're watching the code report. Programmers make for terrible lawyers, and I'm a programmer. But luckily, I have a lawyer friend who helped me analyze this case. So Epic Games makes video games may have heard of like Fortnite, in addition to the unreal game engine. Now on the Google Play Store, apps that have over $1,000,000 in revenue are required to pay a 30% cut for any in app purchases. Simply put, Epic Games thinks these fees are exorbitant and unfair. It believes Google holds an illegal monopoly with the Play Store and Google Play Billing. What's interesting though is that Android is an open source platform based on Linux, and there are alternative app stores out there where you can distribute Android apps without Google, although vast majority of consumers use the Play Store. In addition, it's not illegal to have a monopoly. Like, you can't be penalized just for building a good product and being successful. Poll. However, a monopoly becomes illegal when you exploit the market, either through price discrimination, exclusive dealings, or tying contracts. Now Epic Games has also been fighting a similar battle with the Apple App Store, but it mostly lost that case, and that ruling was recently held up after they appealed. I or no bell. But yesterday, Epic Games won a unanimous decision, where the jury said that Google engages in anti competitive behavior. Google will appeal, but why did Apple win and Google lose? Well, that's That's where things get interesting. Apple has an entirely closed off system, a walled garden where iOS is not open source, and they don't allow alternative app stores for iOS devices. You can think of Apple Phones and app store as all part of the same product, and developers have nowhere else to go. Everybody has to think different in the exact same way. Now that feels more unfair compared to Google's ecosystem, where or the operating system is open source, there are multiple app stores out there, and Google even has an alternative in app purchases program, although it's currently just a pilot program. Now In Apple's case, developers have nowhere to go, but in Google's case, they need to convince developers that the Google Play Store is their best option. One thing we learned about in the case is Project Hug. Give me a hug. No way. Come here. I'm not coming over there. Let's go. Forget it. A project where Google offered game developers tens of 1,000,000 of dollars and even offered Epic Games a $147,000,000 to launch Fortnite on Google Play. The thing is though, these payments didn't block a developer from launching on another platform as long as they launched on Google Play the same day. So it doesn't really look like they're trying to block other app stores, except there's also these internal documents like this one where a Play Store executive brags about how they got Riot Games, creator of League of Legends, to stop element on its own app store. Game developers are absolute cash cows for the app stores, and the company bragged internally about how it's one of the most profitable businesses in the world. But these cash cows can't be milked if they take their games to their own platforms. As a small time developer, it's important to understand that the top 1% gets treated differently. Way. Companies like Spotify can bypass app store fees, and Netflix was offered a 10% cut. In addition, Google had agreements with Chinese m's to give manufacturers a cut of Play Store fees to prevent them from pre installing other app stores. And for all these reasons, the jury decided that Google did a big no no. I guess. The lesson to be learned here is that if you want to dominate tech, build a fully closed off system like Apple, and don't try to build an open system like Google where you need secret deals to dominate it. Now The next step is for Epic and Google to get back together in January to remedy the lawsuit. Epic doesn't want money though. It wants fundamental changes to the way the app stores work, which is likely good news for all the mobile developers out there. But this is all one guy's fault, Tim Sweeney. At one point, Google even considered taking a large stake in Epic games, but then decided against it once they found out that Tim Sweeney was the controlling shareholder, because he's a bit of an outlier GigaChad as far as tech billionaires go. And the fact that he had the balls to go up against Big Tech and actually won, ironically embodies this quote from Steve Jobs. The ones who or crazy enough to think they can change the world are the ones who do. This has been the Code Report. Thanks for watching, and I will see you in the next one.
It's
it's
a
a
modern
modern
day
day
David
david
versus
versus
Goliath
goliath
story.
story
The
the
$1,000,000,000
$1,000,000,000
Epic
epic
Games
games
picks
picks
a
a
fight
fight
with
with
the
the
$1,000,000,000
$1,000,000,000
Google,
google
and
and
comes
comes
out
out
with
with
a
a
decisive
decisive
legal
legal
victory.
victory
But
but
the
the
prize
prize
is
is
not
not
money.
money
It's
it's
much
much
bigger
bigger
than
than
that,
that
and
and
could
could
dramatically
dramatically
change
change
the
the
mobile
mobile
app
app
development
development
landscape
landscape
as
as
we
we
know
know
it.
it
It
it
is
is
December
december
of
of
2023,
2023
and
and
you're
you're
watching
watching
the
the
code
code
report.
report
Programmers
programmers
make
make
for
for
terrible
terrible
lawyers,
lawyers
and
and
I'm
i'm
a
a
programmer.
programmer
But
but
luckily,
luckily
I
i
have
have
a
a
lawyer
lawyer
friend
friend
who
who
helped
helped
me
me
analyze
analyze
this
this
case.
case
So
so
Epic
epic
Games
games
makes
makes
video
video
games
games
may
may
have
have
heard
heard
of
of
like
like
Fortnite,
fortnite
in
in
addition
addition
to
to
the
the
unreal
unreal
game
game
engine.
engine
Now
now
on
on
the
the
Google
google
Play
play
Store,
store
apps
apps
that
that
have
have
over
over
$1,000,000
$1,000,000
in
in
revenue
revenue
are
are
required
required
to
to
pay
pay
a
a
30%
30%
cut
cut
for
for
any
any
in
in
app
app
purchases.
purchases
Simply
simply
put,
put
Epic
epic
Games
games
thinks
thinks
these
these
fees
fees
are
are
exorbitant
exorbitant
and
and
unfair.
unfair
It
it
believes
believes
Google
google
holds
holds
an
an
illegal
illegal
monopoly
monopoly
with
with
the
the
Play
play
Store
store
and
and
Google
google
Play
play
Billing.
billing
What's
what's
interesting
interesting
though
though
is
is
that
that
Android
android
is
is
an
an
open
open
source
source
platform
platform
based
based
on
on
Linux,
linux
and
and
there
there
are
are
alternative
alternative
app
app
stores
stores
out
out
there
there
where
where
you
you
can
can
distribute
distribute
Android
android
apps
apps
without
without
Google,
google
although
although
vast
vast
majority
majority
of
of
consumers
consumers
use
use
the
the
Play
play
Store.
store
In
in
addition,
addition
it's
it's
not
not
illegal
illegal
to
to
have
have
a
a
monopoly.
monopoly
Like,
like
you
you
can't
can't
be
be
penalized
penalized
just
just
for
for
building
building
a
a
good
good
product
product
and
and
being
being
successful.
successful
Poll.
poll
However,
however
a
a
monopoly
monopoly
becomes
becomes
illegal
illegal
when
when
you
you
exploit
exploit
the
the
market,
market
either
either
through
through
price
price
discrimination,
discrimination
exclusive
exclusive
dealings,
dealings
or
or
tying
tying
contracts.
contracts
Now
now
Epic
epic
Games
games
has
has
also
also
been
been
fighting
fighting
a
a
similar
similar
battle
battle
with
with
the
the
Apple
apple
App
app
Store,
store
but
but
it
it
mostly
mostly
lost
lost
that
that
case,
case
and
and
that
that
ruling
ruling
was
was
recently
recently
held
held
up
up
after
after
they
they
appealed.
appealed
I
i
or
or
no
no
bell.
bell
But
but
yesterday,
yesterday
Epic
epic
Games
games
won
won
a
a
unanimous
unanimous
decision,
decision
where
where
the
the
jury
jury
said
said
that
that
Google
google
engages
engages
in
in
anti
anti
competitive
competitive
behavior.
behavior
Google
google
will
will
appeal,
appeal
but
but
why
why
did
did
Apple
apple
win
win
and
and
Google
google
lose?
lose
Well,
well
that's
that's
That's
that's
where
where
things
things
get
get
interesting.
interesting
Apple
apple
has
has
an
an
entirely
entirely
closed
closed
off
off
system,
system
a
a
walled
walled
garden
garden
where
where
iOS
ios
is
is
not
not
open
open
source,
source
and
and
they
they
don't
don't
allow
allow
alternative
alternative
app
app
stores
stores
for
for
iOS
ios
devices.
devices
You
you
can
can
think
think
of
of
Apple
apple
Phones
phones
and
and
app
app
store
store
as
as
all
all
part
part
of
of
the
the
same
same
product,
product
and
and
developers
developers
have
have
nowhere
nowhere
else
else
to
to
go.
go
Everybody
everybody
has
has
to
to
think
think
different
different
in
in
the
the
exact
exact
same
same
way.
way
Now
now
that
that
feels
feels
more
more
unfair
unfair
compared
compared
to
to
Google's
google's
ecosystem,
ecosystem
where
where
or
or
the
the
operating
operating
system
system
is
is
open
open
source,
source
there
there
are
are
multiple
multiple
app
app
stores
stores
out
out
there,
there
and
and
Google
google
even
even
has
has
an
an
alternative
alternative
in
in
app
app
purchases
purchases
program,
program
although
although
it's
it's
currently
currently
just
just
a
a
pilot
pilot
program.
program
Now
now
In
in
Apple's
apple's
case,
case
developers
developers
have
have
nowhere
nowhere
to
to
go,
go
but
but
in
in
Google's
google's
case,
case
they
they
need
need
to
to
convince
convince
developers
developers
that
that
the
the
Google
google
Play
play
Store
store
is
is
their
their
best
best
option.
option
One
one
thing
thing
we
we
learned
learned
about
about
in
in
the
the
case
case
is
is
Project
project
Hug.
hug
Give
give
me
me
a
a
hug.
hug
No
no
way.
way
Come
come
here.
here
I'm
i'm
not
not
coming
coming
over
over
there.
there
Let's
let's
go.
go
Forget
forget
it.
it
A
a
project
project
where
where
Google
google
offered
offered
game
game
developers
developers
tens
tens
of
of
1,000,000
1,000,000
of
of
dollars
dollars
and
and
even
even
offered
offered
Epic
epic
Games
games
a
a
$147,000,000
$147,000,000
to
to
launch
launch
Fortnite
fortnite
on
on
Google
google
Play.
play
The
the
thing
thing
is
is
though,
though
these
these
payments
payments
didn't
didn't
block
block
a
a
developer
developer
from
from
launching
launching
on
on
another
another
platform
platform
as
as
long
long
as
as
they
they
launched
launched
on
on
Google
google
Play
play
the
the
same
same
day.
day
So
so
it
it
doesn't
doesn't
really
really
look
look
like
like
they're
they're
trying
trying
to
to
block
block
other
other
app
app
stores,
stores
except
except
there's
there's
also
also
these
these
internal
internal
documents
documents
like
like
this
this
one
one
where
where
a
a
Play
play
Store
store
executive
executive
brags
brags
about
about
how
how
they
they
got
got
Riot
riot
Games,
games
creator
creator
of
of
League
league
of
of
Legends,
legends
to
to
stop
stop
element
element
on
on
its
its
own
own
app
app
store.
store
Game
game
developers
developers
are
are
absolute
absolute
cash
cash
cows
cows
for
for
the
the
app
app
stores,
stores
and
and
the
the
company
company
bragged
bragged
internally
internally
about
about
how
how
it's
it's
one
one
of
of
the
the
most
most
profitable
profitable
businesses
businesses
in
in
the
the
world.
world
But
but
these
these
cash
cash
cows
cows
can't
can't
be
be
milked
milked
if
if
they
they
take
take
their
their
games
games
to
to
their
their
own
own
platforms.
platforms
As
as
a
a
small
small
time
time
developer,
developer
it's
it's
important
important
to
to
understand
understand
that
that
the
the
top
top
1%
1%
gets
gets
treated
treated
differently.
differently
Way.
way
Companies
companies
like
like
Spotify
spotify
can
can
bypass
bypass
app
app
store
store
fees,
fees
and
and
Netflix
netflix
was
was
offered
offered
a
a
10%
10%
cut.
cut
In
in
addition,
addition
Google
google
had
had
agreements
agreements
with
with
Chinese
chinese
m's
m's
to
to
give
give
manufacturers
manufacturers
a
a
cut
cut
of
of
Play
play
Store
store
fees
fees
to
to
prevent
prevent
them
them
from
from
pre
pre
installing
installing
other
other
app
app
stores.
stores
And
and
for
for
all
all
these
these
reasons,
reasons
the
the
jury
jury
decided
decided
that
that
Google
google
did
did
a
a
big
big
no
no
no.
no
I
i
guess.
guess
The
the
lesson
lesson
to
to
be
be
learned
learned
here
here
is
is
that
that
if
if
you
you
want
want
to
to
dominate
dominate
tech,
tech
build
build
a
a
fully
fully
closed
closed
off
off
system
system
like
like
Apple,
apple
and
and
don't
don't
try
try
to
to
build
build
an
an
open
open
system
system
like
like
Google
google
where
where
you
you
need
need
secret
secret
deals
deals
to
to
dominate
dominate
it.
it
Now
now
The
the
next
next
step
step
is
is
for
for
Epic
epic
and
and
Google
google
to
to
get
get
back
back
together
together
in
in
January
january
to
to
remedy
remedy
the
the
lawsuit.
lawsuit
Epic
epic
doesn't
doesn't
want
want
money
money
though.
though
It
it
wants
wants
fundamental
fundamental
changes
changes
to
to
the
the
way
way
the
the
app
app
stores
stores
work,
work
which
which
is
is
likely
likely
good
good
news
news
for
for
all
all
the
the
mobile
mobile
developers
developers
out
out
there.
there
But
but
this
this
is
is
all
all
one
one
guy's
guy's
fault,
fault
Tim
tim
Sweeney.
sweeney
At
at
one
one
point,
point
Google
google
even
even
considered
considered
taking
taking
a
a
large
large
stake
stake
in
in
Epic
epic
games,
games
but
but
then
then
decided
decided
against
against
it
it
once
once
they
they
found
found
out
out
that
that
Tim
tim
Sweeney
sweeney
was
was
the
the
controlling
controlling
shareholder,
shareholder
because
because
he's
he's
a
a
bit
bit
of
of
an
an
outlier
outlier
GigaChad
gigachad
as
as
far
far
as
as
tech
tech
billionaires
billionaires
go.
go
And
and
the
the
fact
fact
that
that
he
he
had
had
the
the
balls
balls
to
to
go
go
up
up
against
against
Big
big
Tech
tech
and
and
actually
actually
won,
won
ironically
ironically
embodies
embodies
this
this
quote
quote
from
from
Steve
steve
Jobs.
jobs
The
the
ones
ones
who
who
or
or
crazy
crazy
enough
enough
to
to
think
think
they
they
can
can
change
change
the
the
world
world
are
are
the
the
ones
ones
who
who
do.
do
This
this
has
has
been
been
the
the
Code
code
Report.
report
Thanks
thanks
for
for
watching,
watching
and
and
I
i
will
will
see
see
you
you
in
in
the
the
next
next
one.
one
success
In a legal battle with Google and Apple, Epic Games has won a unanimous decision, citing a judge's ruling that Google engages in anti competitive behavior. Apple's case is also mentioned, but the jury found that Google's pricing arrangement with Apple was unfair. The company has also been trying to appeal for a refund on Apple's fees, but the outcome is unclear. The next step is for Google and Apple to get together in January to remedy laws and make fundamental changes to the way app stores work.
The shocking result of Epic Games vs Google
It's a modern day David versus Goliath story. The $1,000,000,000 Epic Games picks a fight with the $1,000,000,000 Google, and comes out with a decisive legal victory. But the prize is not money. It's much bigger than that, and could dramatically change the mobile app development landscape as we know it. It is December of 2023, and you're watching the code report. Programmers make for terrible lawyers, and I'm a programmer. But luckily, I have a lawyer friend who helped me analyze this case. So Epic Games makes video games may have heard of like Fortnite, in addition to the unreal game engine. Now on the Google Play Store, apps that have over $1,000,000 in revenue are required to pay a 30% cut for any in app purchases. Simply put, Epic Games thinks these fees are exorbitant and unfair. It believes Google holds an illegal monopoly with the Play Store and Google Play Billing. What's interesting though is that Android is an open source platform based on Linux, and there are alternative app stores out there where you can distribute Android apps without Google, although vast majority of consumers use the Play Store. In addition, it's not illegal to have a monopoly. Like, you can't be penalized just for building a good product and being successful. Poll. However, a monopoly becomes illegal when you exploit the market, either through price discrimination, exclusive dealings, or tying contracts. Now Epic Games has also been fighting a similar battle with the Apple App Store, but it mostly lost that case, and that ruling was recently held up after they appealed. I or no bell. But yesterday, Epic Games won a unanimous decision, where the jury said that Google engages in anti competitive behavior. Google will appeal, but why did Apple win and Google lose? Well, that's That's where things get interesting. Apple has an entirely closed off system, a walled garden where iOS is not open source, and they don't allow alternative app stores for iOS devices. You can think of Apple Phones and app store as all part of the same product, and developers have nowhere else to go. Everybody has to think different in the exact same way. Now that feels more unfair compared to Google's ecosystem, where or the operating system is open source, there are multiple app stores out there, and Google even has an alternative in app purchases program, although it's currently just a pilot program. Now In Apple's case, developers have nowhere to go, but in Google's case, they need to convince developers that the Google Play Store is their best option. One thing we learned about in the case is Project Hug. Give me a hug. No way. Come here. I'm not coming over there. Let's go. Forget it. A project where Google offered game developers tens of 1,000,000 of dollars and even offered Epic Games a $147,000,000 to launch Fortnite on Google Play. The thing is though, these payments didn't block a developer from launching on another platform as long as they launched on Google Play the same day. So it doesn't really look like they're trying to block other app stores, except there's also these internal documents like this one where a Play Store executive brags about how they got Riot Games, creator of League of Legends, to stop element on its own app store. Game developers are absolute cash cows for the app stores, and the company bragged internally about how it's one of the most profitable businesses in the world. But these cash cows can't be milked if they take their games to their own platforms. As a small time developer, it's important to understand that the top 1% gets treated differently. Way. Companies like Spotify can bypass app store fees, and Netflix was offered a 10% cut. In addition, Google had agreements with Chinese m's to give manufacturers a cut of Play Store fees to prevent them from pre installing other app stores. And for all these reasons, the jury decided that Google did a big no no. I guess. The lesson to be learned here is that if you want to dominate tech, build a fully closed off system like Apple, and don't try to build an open system like Google where you need secret deals to dominate it. Now The next step is for Epic and Google to get back together in January to remedy the lawsuit. Epic doesn't want money though. It wants fundamental changes to the way the app stores work, which is likely good news for all the mobile developers out there. But this is all one guy's fault, Tim Sweeney. At one point, Google even considered taking a large stake in Epic games, but then decided against it once they found out that Tim Sweeney was the controlling shareholder, because he's a bit of an outlier GigaChad as far as tech billionaires go. And the fact that he had the balls to go up against Big Tech and actually won, ironically embodies this quote from Steve Jobs. The ones who or crazy enough to think they can change the world are the ones who do. This has been the Code Report. Thanks for watching, and I will see you in the next one.
In a legal battle with Google and Apple, Epic Games has won a unanimous decision, citing a judge's ruling that Google engages in anti competitive behavior. Apple's case is also mentioned, but the jury found that Google's pricing arrangement with Apple was unfair. The company has also been trying to appeal for a refund on Apple's fees, but the outcome is unclear. The next step is for Google and Apple to get together in January to remedy laws and make fundamental changes to the way app stores work.