Key Points
- After the Epic Games lawsuit, Google ordered the Android app ecosystem to be opened to third-party stores and payment systems.
- The injunction will take effect on November 1, 2024, with a three-person technical committee overseeing changes.
- Google plans to appeal the decision, citing potential harm to consumers, developers, and manufacturers.
- The ruling is part of broader antitrust challenges Google faces over its market dominance.
On Monday, a U.S. District Judge ordered Google, a subsidiary of Alphabet (GOOGL.O), to revamp its mobile app business in response to a legal battle with Epic Games, the maker of Fortnite. Judge James Donato of San Francisco issued an injunction requiring Google to offer Android users more freedom in downloading apps and making in-app payments, fostering greater competition in its Play Store ecosystem.
The ruling follows a jury verdict from December 2023, where Epic Games successfully argued that Google had unlawfully monopolized app distribution and payment methods on Android devices. The injunction will require Google to make significant changes, including allowing third-party app stores and payment systems for in-app transactions. For three years, Google will be prohibited from forcing developers to use its payment methods or blocking users from downloading apps from alternative sources.
In addition, the order restricts Google from paying device manufacturers to preinstall its app store. It prevents the company from sharing revenue generated through the Play Store with other app distributors.
Google responded by stating it would appeal the ruling to the 9th U.S. Circuit Court of Appeals and would seek to pause the injunction while the appeal is processed. The company expressed concerns that the changes would result in “unintended consequences” that could negatively affect U.S. consumers, developers, and device manufacturers.
Epic Games CEO Tim Sweeney celebrated the decision on the social media platform X, calling it “big news” for developers and app store makers. He announced that the Epic Games Store and other alternative app stores would be available on Google Play by 2025. Sweeney believes this ruling gives developers and companies a three-year window to create a competitive Android app ecosystem.
The injunction will take effect on November 1, 2024, giving Google time to adjust its agreements and practices to comply with the ruling. Judge Donato also ordered the creation of a three-person technical committee to oversee and implement the changes, with one representative each from Google and Epic and a third chosen by the first two members.
The case stems from Epic’s 2020 lawsuit, which accused Google of stifling competition by controlling how apps are accessed and how payments are processed on Android devices.
Google’s legal troubles extend beyond this case. The company faces separate antitrust lawsuits regarding its web search and advertising technology dominance.
