Epic Games Files New Antitrust Lawsuit Against Google, Samsung Over App Store Restrictions

Zinger Key Points
  • Epic Games sues Google and Samsung, accusing them of antitrust violations for limiting competition in the Google Play Store.
  • A lawsuit focus is on Samsung’s Auto Blocker, which Epic claims restricts users from installing apps outside of approved app stores.

Epic Games, the developer behind the globally popular game Fortnite, has launched a new legal battle, this time accusing Samsung and Alphabet Inc.’s GOOGLGOOG Google of antitrust violations.

In a lawsuit filed in a U.S. federal court in California, Epic claimed the two tech giants conspired to protect the Google Play Store from competition, significantly limiting consumer choice, Reuters reported.

See Also: Epic Games Mobile Store Goes Live In Europe, CEO Says Apple ‘Had To Be Challenged’

The heart of the lawsuit revolves around Samsung’s Auto Blocker feature, which Epic alleges was designed to discourage users from downloading apps from authorized sources other than Google's Play Store or Samsung’s Galaxy Store.

Auto Blocker, a security feature first introduced as optional in 2023, became the default setting on Samsung smartphones by July 2024.

According to Epic, the feature is intentionally difficult to disable, limiting users’ ability to install apps from alternative app markets.

Claims Of Unfair Competition

During a press briefing, Tim Sweeney, CEO of Epic Games, said: “Google is pretending to keep the user safe by saying you’re not allowed to install apps from unknown sources. Well, Google knows what Fortnite is as they have distributed it in the past.”

“It’s about misleading users into thinking competitors’ products are inferior to the company’s products themselves,” he added.

Epic, which has the financial backing of China's Tencent Holdings ADR TCEHY, argued Google's and Samsung's actions violate U.S. antitrust laws by restricting consumer choice and preventing the emergence of a more competitive app ecosystem — one that would ultimately reduce the cost of apps.

Samsung's Response

In response to the lawsuit, Samsung issued a statement dismissing Epic's claims as “baseless,” asserting that the Auto Blocker feature aligns with the company’s commitment to user security.

"The features integrated into our devices are designed in accordance with Samsung's core principles of security, privacy, and user control," the company stated. "Users have the choice to disable Auto Blocker at any time, and we remain fully committed to safeguarding users’ personal data."

Samsung also affirmed its intent to “vigorously contest” the allegations made by Epic Games.

A Broader Battle for App Store Freedom

Epic's lawsuit marks the latest chapter in the company's ongoing crusade against app store monopolies.

In December 2023, Epic scored a significant victory when a U.S. court ruled against Google, forcing the tech giant to allow easier access to third-party apps.

Epic alleged Samsung's Auto Blocker was specifically designed to blunt the impact of that ruling.

This new lawsuit also added to the company’s previous battles with Google and Apple Inc AAPL over their app store payment structures. Epic argued against the 30% commission fees imposed on developers.

That particular conflict led to Fortnite being removed from Google Play and Apple's App Store for nearly four years. However, following regulatory scrutiny in the European Union, Fortnite was reinstated on iPhones in the EU and made available again on Google's Android devices globally last month.

The EU's Role

In addition to its U.S. lawsuit, Epic plans to bring its concerns to regulators in the EU. The EU has long been critical of Google's business practices, frequently investigating the tech giant over issues related to competition and consumer choice.

Epic is expected to argue Google's control over app distribution is harmful not just in the U.S., but around the world .

In related news, the Epic Games Store has surpassed 10 million mobile installs in its first 1.5 months. Despite slower growth, Sweeney remains confident, calling the 100 million year-end goal "totally achievable," The Verge reported.

Read Next:

Photo: Shutterstock.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!