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FTC wants court to impose tough penalties on Google in Epic Games case


FTC wants court to impose tough penalties on Google in Epic Games case

Key findings

  • The Federal Trade Commission (FTC) plans to impose sanctions on Alphabet’s Google after a jury ruled that Google violated antitrust laws.
  • The lawsuit was filed by “Fortnite” video game maker Epic Games and alleges that Google is engaging in monopolistic practices in its Play Store.
  • In another case, Google was found guilty last week of having an illegal monopoly on internet search.

The Federal Trade Commission (FTC) asked a federal court to impose strict restrictions on Alphabet-owned Google (GOOGL) after a jury found in late 2023 that Google had violated antitrust laws in connection with its Google Play Store.

In an amicus curiae brief filed Monday in the U.S. District Court for Northern California, the FTC said it “encourages the Court to use its broad authority to order a remedy that will end the illegal conduct, prevent its recurrence, and restore competition.” In the statement accompanying the complaint filed Tuesday, it added that the decision should also ensure that Google “does not continue to reap the benefits and advantages it obtained from the antitrust violation.”

Fortnite maker claims Google is suppressing competition

The case concerns a lawsuit brought by Epic Games, the maker of the video game “Fortnite”. The company claims that Google is using its dominant market position to suppress potential competitors and charge rival app developers exorbitant fees of up to 30%. The jury ruled in favor of Epic Games in December, and the court is considering what steps should be taken to combat the monopolistic practices.

The Epic Games decision was not the only court battle Google has lost recently. Last week, a judge in the U.S. District Court for the District of Columbia ruled that the company violated antitrust law by maintaining an illegal influence over internet searches. Google announced it would appeal the decision.

The FTC’s announcement did not harm Google shares on Tuesday. They rose by more than 1 percent and closed at $164.16. That’s an increase of around 16.5 percent since the beginning of the year.

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