Tim Sweeney, the CEO of Epic Games, had always worried that his company’s victory last year in a multimillion-dollar legal battle against Google’s app store monopoly wouldn’t be enough to open up competition. Even if Google could no longer keep alternative marketplaces out of Android, phone manufacturers could make them harder to access. In a US lawsuit filed in San Francisco today, that’s exactly what Epic alleges Google has conspired with Samsung to do.
Some newer Samsung phones have required settings changes to install apps from the web such as Epic’s app marketplace, according to Epic, which also develops Fortnite and Rocket Racing. The requirement became effective by default in July, and Epic launched its app store in August. Samsung claims the feature it calls Auto Blocker protects against “applications from unauthorized sources” and “malicious activity.” But it extends the installation process from 15 steps to 21, Epic alleges. The company says that it has found in the past that the greater the number of hurdles, the fewer people complete the process.
“It is not about reasonable measures to protect users against malware,” Sweeney told reporters in a briefing ahead of the lawsuit filing. “It’s about obstruction of competition.”
“Contrary to Epic Game’s assertions, Samsung actively fosters market competition, enhances consumer choice, and conducts its operations fairly,” said a Samsung spokesperson in a statement. “The features integrated into our devices are designed in accordance with Samsung’s core principles of security, privacy, and user control, and we remain fully committed to safeguarding users’ personal data. Users have the choice to disable Auto Blocker at any time. We plan to vigorously contest Epic Game’s baseless claims.”
“This is a meritless lawsuit. Android device makers are free to take their own steps to keep their users safe and secure,” said Google spokesperson Danielle Cohen in a statement.
The litigation builds on an effort Epic launched in 2020 to deliver more choice to mobile users and boost its own bottom line. While downloading apps any which way from just about any source is generally easy on desktops and laptops, Apple and Google have used warnings and varying policy and technical curbs to keep users downloading from the iOS App Store and Google Play, which deliver enormous profits to the tech giants by virtue of sales commissions they collect.
Epic, through a lawsuit, won a minor concession from Apple that is still being fought over; penalties against Google are expected from a judge soon.
In the press conference, Sweeney acknowledged that Epic doesn’t have clear evidence that Google and Samsung collaborated to roll out Auto Blocker. But emails and notes presented by Epic during its jury trial against Google last year showed how the search company regularly engaged in discussions with Samsung aimed at limiting competition. Google denied those accusations.
Early this month, Sweeney reached out to two senior Samsung executives to ask them to rethink the approach with Auto Blocker and allow for a smoother process to download legitimate software. Sweeney said a resolution couldn’t be reached that benefitted all developers, prompting the lawsuit. “We are going to continue to fight until there is a level playing field,” he says. He added that it “sucks” to sue Samsung, which has promoted Epic’s offerings in the past.
Epic has notched over 10 million installations of its mobile app store, short of a goal to reach 100 million by the end of the year, Sweeney says. He believes Auto Blocker and other new impediments, as he views them, have hurt Epic’s ability to gain traction. And his focus on fighting Apple and Google is costing Epic significant sums, with no end in sight to the litigation. “The benefits only come in the future, when the obstructions have truly been eliminated,” he says.
Update 9/30/24 9:35am ET: This story has been updated with comment from Samsung.
Update 9/30/24 1:00pm ET: This story has been updated with comment from Google.
