Why Google’s Antitrust Case Loss Against 'Fortnite' Maker Epic Games Matters for Big Tech

Alphabet's Google (GOOGL) lost an antitrust case against "Fortnite" maker Epic Games alleging that Google's app Play Store maintained illegal monopoly power, in a decision that could potentially disrupt a $200 billion app store industry.

Epic had filed a lawsuit against Google accusing the tech giant of engaging in anticompetitive practices by using its dominant position to suppress rival app stores and charge developers exorbitant fees of up to 30%. By tying the Play Store to its billing service, Epic argued, Google restricts developer freedom by shutting out alternative options.

If the ruling holds, it could empower developers to exert greater control over their apps and profits, significantly diluting Google and Apple's (AAPL) power, as they operate the largest app stores globally. The Epic Games verdict also coincides with Google's ongoing defense in a larger antitrust case of the U.S. Justice Department targeting its search business.

The court indicated it will begin work on the remedies Google must implement to address the issue next month. Google said it intends to appeal the ruling and denies any wrongdoing, arguing that it operates in a highly competitive market alongside Apple's App Store.

Just earlier this year, Google settled a class action suit which claimed it overcharged users, as well as a case by dating app developer Match Group that alleged Google monopolized app distribution in Android mobiles.

Shares of Google parent Alphabet were down a little under 1% in early trading Tuesday as of about 11:00 a.m. ET following the news, though they've gained over 48% so far this year.