Google’s Epic Legal Defeat Threatens $200 Billion App Store Industry
- Jury decision poised to accelerate crumbling of business model
- Case takes aim at app store commissions of up to 30%
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Google’s legal defeat at the hands of Fortnite maker Epic Games Inc. threatens to roil an app store duopoly with Apple Inc. that generates close to $200 billion a year and dictates how billions of consumers use mobile devices.
The loss — handed down by a San Francisco jury on Monday — is a blow to the two companies’ business model in apps, where they charge commissions of as much as 30% to software developers who typically have few other options. Google shares were down less than 1% in New York Tuesday morning at $132.62.