A US court has mandated Google to allow competitor app stores on its Android platform. This directive follows Google’s loss in an antitrust lawsuit initiated by Epic Games, which accused Google of maintaining an illegal monopoly with its Play Store on Android devices. A California jury supported this claim, concluding that Google engaged in unlawful practices to sustain its app store dominance.
The ruling, which Google is appealing, is a major blow to the tech giant. It mirrors a previous ruling that labelled Google’s search engine a monopoly. Additionally, regarding its online advertising dominance, Google faces another antitrust challenge in Virginia.
As part of the court’s decision, Google must cease several anticompetitive practices identified by the jury for the next three years. These include forbidden revenue-sharing agreements with potential competitors and exclusive app launching requirements on the Play Store.
To ensure compliance, the court has ordered the establishment of a three-person Technical Committee to oversee the implementation of these changes and to mediate any arising disputes.
This injunction significantly challenges Google’s control over the Android app marketplace and could significantly alter the mobile app landscape in the foreseeable future.
Tim Sweeney, CEO of Epic Games, has called on companies to capitalize on this decision to foster a robust and competitive Android ecosystem that Google cannot undermine. He noted that while the injunction applies only in the US, the fight against Google’s market practices would persist globally.
Google has expressed its intention to appeal the decision and requested a stay on the injunction during the appeal process. The court has set the injunction to commence on November 1, with some conditions delayed until July 1 for implementation.
Lee-Anne Mulholland, Google’s Vice President of Regulatory Affairs, emphasized the company’s commitment to advocating for developers, device manufacturers, and the vast number of Android users worldwide.
Android devices, which allow companies to install the Android system for free under specific conditions, including the mandatory inclusion of the Google Play Store on the home screen, dominate about 70 per cent of the global smartphone market.
The court highlighted Google’s efforts to ensure the Google Play app store remained the sole payment gateway for third-party apps, such as Fortnite, which generates significant revenue, particularly from video games. Epic Games has long argued for the ability to process payments for games like Fortnite outside of Google or Apple’s app stores, which collect up to 30 per cent commissions.
While Epic Games had limited success in a similar lawsuit against Apple, the trial against Google has unveiled that Google earns tens of billions in revenue from its app store, partly by ensuring exclusivity through financial agreements with smartphone manufacturers.
