Google, Samsung Fail to Escape Epic Games’ Antitrust Lawsuit (1)

Alphabet Inc.'s Google and Samsung Electronics Co. Ltd. were unable to fend off a lawsuit from video game maker Epic Games Inc. alleging the companies violated antitrust law by colluding to block rival app marketplaces.

Judge James Donato denied Google and Samsung’s motions to dismiss at a Thursday hearing in San Francisco with a short bench ruling, saying the issues are too complicated to resolve at this early stage of the case.

“There are certainly occasions where dismissal is appropriate,” Donato said. “This is not one of them.”

Epic, maker of the popular video game Fortnite, alleged that Samsung agreed with Google to create default settings on its phones to prevent malicious software. But the “Auto Blocker” setting blocks any app store that competes with the Google Play Store or the Samsung Galaxy Store, including ones launched by Epic and Microsoft Corp.

Donato, who sits on the US District Court for the Northern District of California, oversaw a trial in December 2023 in a similar case brought by Epic where the jury concluded that Google app store fees and practices were anti-competitive.

Epic’s lawsuit filed last fall said Google is attempting to undermine that jury verdict through its close business ties with Samsung, the world’s largest Android smartphone maker. The complaint said the Google Play Store is where more than 80% of all apps are downloaded on Android phones globally, excluding China.

Although Donato ordered Google to open its system for alternative app marketplaces, Epic alleged it coordinated with Samsung last summer to make the Auto Blocker setting a default on Samsung phones. The setting halts users from downloading apps from alternative stores, and if a user tries to turn it off, they are told the setting is a security feature.

“This scare tactic will lead many users to abandon any attempt to download the app or app store,” Epic argued.

Google’s motion to dismiss argued that Epic had failed to show it had made any agreement with Samsung to block competition. Samsung’s motion said the Auto Blocker is a product update that “undisputably” improves phone security so it can’t be subject to antitrust liability.

Donato said Thursday he would provide a written opinion on his decision soon. He also said he plans to set a trial date in about a year.

Samsung and Google didn’t immediately return requests for comment.

Cravath Swaine & Moore LLP and Benesch Friedlander Coplan & Aronoff LLP represent Epic. Quinn Emanuel Urquhart & Sullivan LLP represents Samsung. Paul Weiss Rifkind Wharton & Garrison LLP represents Google.

The case is Epic Games, Inc. v. Samsung Electronics Co. Ltd., N.D. Cal., No. 3:24-cv-06843, 4/3/25.