Google Forced to Open Play Store to Rivals After Antitrust Defeat to Epic

Google Ordered to Open Up Android App Store for Greater Competition

A US judge has ruled that Alphabet’s Google must allow more options for Android users to download apps and pay for in-app transactions, following a legal battle with Epic Games, the maker of Fortnite. The decision by US District Judge James Donato in San Francisco requires Google to make significant changes to its Play Store, including permitting apps from rival sources.

Key Changes to the Play Store

The court order, issued on Monday, outlines several restrictions on Google:

• Google cannot make payments to device manufacturers to preinstall the Play Store.
• It is prohibited from sharing Play Store revenue with other app distributors.
• For three years, Google cannot prevent the use of alternative in-app payment methods.
• Users must be allowed to download competing third-party Android app platforms or stores.

The injunction is set to take effect on 1 November, giving Google time to comply with the new requirements.

Overseeing the Changes

To ensure Google follows the order, Judge Donato instructed Epic Games and Google to form a three-person technical committee to implement and monitor the changes. Each company will choose one member, with the third member selected by those two.

“You’re going to end up paying something to make the world right after having been found to be a monopolist,” Judge Donato told Google’s lawyers.

Google’s Ongoing Antitrust Battles

This ruling is just one of several antitrust cases Google is facing. In a separate case, US District Judge Amit Mehta ruled in August that Google had illegally monopolised web search by spending billions to become the default search engine. Additionally, a trial began in September regarding Google’s dominance in the advertising technology market.

Google has consistently denied wrongdoing in all three cases and plans to appeal Judge Donato’s verdict, potentially requesting a pause on the injunction from the San Francisco-based Ninth US Circuit Court of Appeals.

The Epic Games Lawsuit

Epic Games filed the lawsuit in 2020, accusing Google of monopolising app distribution and payment methods on Android devices. In December 2023, a jury sided with Epic, finding that Google had unlawfully stifled competition, which led to Judge Donato’s recent order.

Google had argued against Epic’s proposed changes, claiming they would be costly, overly restrictive, and pose risks to consumer privacy and security. However, Judge Donato largely dismissed these concerns during an August hearing.

With the changes taking effect soon, this decision marks a significant shift in how the Android app ecosystem operates, potentially paving the way for more competition and consumer choice in the future.