Google must open up its Android app store to compete with smaller rivals such as “Fortnite” maker Epic Games, a federal judge said Monday in a blistering ruling that could end the company’s dominance over the app market.
The sweeping measures outlined by US District Judge James Donato in San Francisco federal court come months after the North Carolina-based court Epic Games wins great victory against GoogleLast December, a jury found that Google operated an illegal monopoly through the Play Store and its closely held Android in-app billing system.
“You’re going to have to pay something to make the world right after you’re found to be a monopolist,” Donato told Google’s lawyers in court.
According to Donato’s order, for the next three years, Google is required to prevent app developers from using their own in-app payment systems or allowing users to download apps from sources outside of its lucrative “Play Store” for Android apps. Will be stopped from giving instructions to do so.
Additionally, Google would be barred from paying specific app developers to exclusively use its Play Store for distribution and would be barred from sharing the revenue generated by its Play Store with other app store operators.
Shares of Google’s parent company Alphabet fell more than 2% in Monday trading.
Google said it would ask the court to block the judge’s changes pending the outcome of its ongoing appeal of the jury verdict.
“Ultimately, while these changes likely satisfy Epic, they will have a variety of unintended consequences that will harm American consumers, developers, and device makers,” Google said in a blog post.
Epic Games did not immediately respond to a request for comment on the judge’s decision.
Google would also be required to provide rival developers access to its previous catalog of apps. It cannot offer deals to smart device manufacturers or carriers to preinstall the Play Store.
The preliminary injunction will take effect on November 1 and last until the same date in 2027.
Donato said Google would be allowed to take “reasonable measures” to ensure security. Google had argued that any bid to forcibly open its app stores would put user privacy and devices at risk.
The judge ordered the creation of a three-person committee to monitor compliance with his order, with Epic and Google each appointing one member and those two selecting a third member.
Epic Games and other critics have charged for years that Google dominates the app marketplace, where it traditionally takes commissions of up to 30% on digital transactions made within the Play Store.
During the trial, Epic’s legal team focused on Google’s practice of paying and making deals with developers to reduce competition against the Play Store. Lawyers referred to this practice – known internally as “Project Hug” – as a “bribe and block” scheme.
In one such case, Google provided $360 million as incentives to “Call of Duty” maker Activision Blizzard so that it could launch its games on the Play Store.
The judge’s decision is the latest sign of growing legal and regulatory action against Google.
In August, US District Judge Amit Mehta determined that Google It has an illegal monopoly on the online search market. Hopefully he will make a decision on the appropriate punishment by next summer.
Separately, Google is facing off against the Justice Department in a separate federal antitrust case aimed at its alleged monopoly. on digital advertising technology,
In both cases, the Feds are likely to forcibly break up Google’s empire.
with post wireS
