Google has been ordered to open up its app store to rivals following a major court case in the US. Last year, a federal judge ruled the tech giant was running an illegal monopoly in how it controlled the distribution of apps on its Android operating system and via the Google Play Store.
In the final ruling on the case, Judge James Donato has ordered Google to open up the Google Play store in the United States for three years. This includes allowing third-party app stores to be distributed from within Google Play and giving third-party app stores access to the full catalogue of Google Play apps unless developers choose to opt out individually. Beginning in November, Google is also being forced to stop requiring its own payment system be used for apps on the Play Store.
Moreover, the ruling mandates that Google must allow developers to inform users about other ways to pay from within the store, let developers link to other ways to download their apps outside of Google’s app store, and permit developers to set their own prices for apps. Additionally, Google is prohibited from offering money or perks to developers to launch their apps on the Play Store first or exclusively or to not launch on rival stores. The company is also restricted from offering money or perks to device makers or mobile carriers to preinstall the Play Store.
These remedies are a response to the verdict delivered in the Epic Games v Google case in December last year. A jury found that Google had monopoly power in the Android app distribution market and engaged in anticompetitive behaviour to maintain that monopoly. The case was brought by Epic, the maker of popular battle royale game Fortnite, over in-app purchases fees it deemed unfair to third-party app developers.
Epic Games has filed a new lawsuit in the US against Google and Samsung, alleging that Google is now compelling Android customers like Samsung to erect barriers between users and third-party app stores as a way of circumventing the court ruling against Google. In response to the judge’s remedies, Epic Games chief executive Tim Sweeney stated that the Google Play Store injunction lasts for three years and that stakeholders have three years to create a vibrant and competitive Android ecosystem.
Google’s vice president for regulatory affairs, Lee-Anne Mulholland, announced that the technology giant would appeal the verdict and seek a pause in implementing the remedies. Mulholland argued against the changes, stating that they would jeopardize consumer privacy and security, make it harder for developers to promote their apps, and reduce competition on devices. Google asserts that the changes would cause unintended consequences detrimental to American consumers, developers, and device makers. Google plans to appeal the underlying decision and will request the courts to put a hold on Epic’s requested changes pending that appeal.
The ongoing legal battle between Google and Epic Games reflects broader challenges in the tech industry regarding antitrust regulations and competition in app distribution markets. The outcome of this case could have far-reaching implications for the future of app stores and the competition among tech giants.