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FTC Outlines Remedy Concerns in Amicus Brief After Jury Finds Google Illegally Monopolized App Store

“The Federal Trade Commission filed an amicus brief in a case brought by online video game maker Epic Games Inc. against Google LLC’s app store, which outlines how the court should consider potential remedies when determining effective relief to restore competition after Google was found liable for illegal monopolization. The FTC filed its amicus brief in the U.S. District Court for the Northern District of California in an ongoing antitrust case where a jury found Google liable for multiple antitrust violations related to its Google App Store, including finding that Google monopolized the Android App Distribution and Android In-App Payment Solutions markets for digital goods and services transactions. Google’s App Store serves as an essential platform used by developers, which includes Epic, to market their software. Google’s App Store is also critical for users that seek to purchase applications, such as Epic’s online game Fortnite. In its amicus brief, the FTC encourages the court to use its broad power to order a remedy that stops the illegal conduct, prevents its recurrence, and restores competition. Injunctive relief should also restore lost competition in a forward-looking way and should ensure a monopolist is not continuing to reap the advantages and benefits obtained through the antitrust violation, the FTC’s brief stated. Looking forward in cases like Epic v. Google often requires the consideration of network effects, data feedback loops, and other key features of digital markets. This could help ensure that potential competitors can overcome the advantages established digital platforms often gain, which include network effects and data incumbency. These advantages allow established digital platforms to lock-in users, advertisers, and other stakeholders, which create barriers to entry for future competition.”

See also Bloomberg. US Considers a Rare Antitrust Move: Breaking Up Google – “A bid to break up Alphabet Inc.’s Google is one of the options being considered by the Justice Department after a landmark court ruling found that the company monopolized the online search market, according to people with knowledge of the deliberations. The move would be Washington’s first push to dismantle a company for illegal monopolization since unsuccessful efforts to break up Microsoft Corp. two decades ago. Less severe options include forcing Google to share more data with competitors and measures to prevent it from gaining an unfair advantage in AI products, said the people, who asked not to be identified discussing private conversations…”

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