FTC demands comprehensive compensation for Google’s antitrust damages over App Store

A verdict Alphabet Inc. The Federal Trade Commission (FTC) said on Monday that Google’s illegal monopoly over its app store should lead to comprehensive relief that takes into account the cumulative digital network effects that can cement the position of market-dominant technology platforms.

“Accordingly, an effective antitrust remedy may need to go beyond injunctions targeting and prohibiting certain exclusionary conduct in order to restore competition in digital platform markets,” the FTC said in an amicus curiae brief filed Monday in the U.S. District Court for the Northern District of California.

The agency made its position as the court considers remedies in the antitrust case brought by video game company Epic Games Inc. against Google. A jury found last December that Google intentionally exercised a monopoly position through its conduct in connection with its Play Store, including charging commissions of up to 30 percent on in-app purchases and subscriptions.

Judge James Donato will ultimately decide on compensation for Epic, which could include requiring Google to open app distribution methods outside of its own app store. Epic sued Google in 2020, claiming its monopolistic behavior had harmed app developers and consumers.

Donato’s decision comes as Google faces legal consequences in many of its businesses. A federal judge in Washington DC last week ruled that Google has a monopoly in the general search market – a major victory for the U.S. Department of Justice’s antitrust division.

The FTC’s report on Monday provided insight into its view on how to force dominant players out of the market and promote competition.

This includes not only targeting specific practices, the FTC said, but also ensuring that a monopolist does not profit from unlawful conduct. It also argued that the court has “broad remedial power” in private lawsuits that impact the public.

Google objected to certain remedies proposed by Epic because they would involve significant costs and technical effort. Such arguments, if successful, would “undermine deterrence,” the FTC said.

Epic Games is represented by law firms including Cravath Swaine & Moore LLP and Faegre Drinker Biddle & Reath LLP.

Google is represented by law firms such as Morgan Lewis & Bockius LLP and Munger, Tolles & Olson LLP.

The case is Epic Games Inc. v. Google LLC, ND Cal., 3:20-cv-05671-JD, 8/12/24