A U.S. court has ordered Google to open its Play Store to competitors following a permanent injunction issued by Judge James Donato. This decision is part of the ongoing antitrust lawsuit brought by Epic Games against Google, which began in 2020.
The ruling requires Google to allow alternative app stores on Android devices and to make apps from its Play Store available in those stores. For the next three years, Google must also enable users to download third-party app stores directly from its Play Store, opening up the Android app ecosystem to more competition.
The injunction, resulting from a jury decision last December, found that Google violated U.S. antitrust laws by maintaining a monopoly on app distribution and in-app billing for Android devices. Epic Games, known for its popular title Fortnite, initially filed the lawsuit, accusing Google of anti-competitive practices that limited how developers could distribute their apps and charge users. Epic claimed that Google’s deals with hardware manufacturers and its restrictive billing system gave it an unfair advantage over competitors.
As part of the court’s ruling:
- Google cannot offer financial incentives to device manufacturers to preinstall Google Play as the default app store.
- Google can no longer require app developers to use its billing system.
- App makers will be allowed to inform users about less expensive purchase options on their own websites.
- Google must grant access to third-party app stores, allowing them to host apps on Google Play.
- Developers may retain more revenue by avoiding Google’s 15% to 30% transaction fees.
A key element of the ruling is the formation of a three-person committee to oversee Google’s compliance with the injunction. This committee, consisting of representatives from both Google and Epic Games, will address technical issues and monitor Google’s adherence to the new regulations.
Google Plans to Appeal the Ruling
Despite this setback, Google has announced plans to appeal the decision. In a blog post, Lee-Anne Mulholland, Google’s VP of Regulatory Affairs, emphasized that Android is an open platform, and developers have historically had multiple avenues for distributing their apps. Mulholland pointed out that Fortnite was distributed through alternative means, such as the Samsung Galaxy Store, sideloading, and the Epic Games Store, while bypassing Google Play.
Despite these arguments, the court found Google guilty of violating U.S. antitrust laws, with a unanimous jury verdict in December 2023 affirming that Google maintained an illegal monopoly on app distribution and billing for Android devices. The trial revealed that Google’s deals with other gaming companies and device manufacturers were anti-competitive, securing its dominance in the app marketplace.
The outcome of this case contrasts with Epic’s similar lawsuit against Apple, which the company mostly lost. While a jury ruled on Google’s case, Apple’s trial was decided by a judge who largely ruled in favor of the iPhone maker.
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