In a groundbreaking ending to a long lawsuit between Epic and Google, a federal judge has ruled that Google’s Android app store constitutes an illegal monopoly and has ordered the company to open its platform to competition for the next three years.
This is Judge James Donato’s final ruling in Epic Games v. Google, which requires Google to distribute rival third-party app stores within Google Play and grant these stores access to Google Play’s full app catalog unless developers opt-out. Starting November 1, 2024, Google must stop requiring Google Play Billing for apps distributed through Google Play. Android developers can give alternative payment methods in the Play Store and link to external app download sources. Developers can also set their own app prices independent of Play Billing.
The judge’s order also stops Google from doing specific anti-competitive practices. These include sharing app revenue with companies distributing Android apps or planning to launch app stores or platforms, offering developers financial incentives to exclusively launch apps on Google Play or prioritize its platform, and providing financial incentives to device makers and carriers to preinstall Google Play or refrain from preinstalling rival stores.
Judge Donato also had a ruling for Google’s concerns about maintaining safety and security while opening its platform. He ruled that Google could implement reasonable measures to protect the platform, comparable to its current practices, but emphasized these measures must be narrowly tailored and necessary. Epic will have a technical committee to review any disputes related to these measures. Google will also be able to charge a fee for these policing efforts, but Epic Games will have a say in how much Google can charge and a say in the specifics of the fee structure.
It remains to be seen how many of these requirements are technically feasable. It’s not clear how third-party app stores would be able to install apps and games from the Play Store, especially apps that require payment or are packaged with App Bundles.
The ruling is a victory for Epic Games, which had already also won a legal battle against Apple. The judge’s order could potentially encourage the development of alternative app stores, which would open the market to competition and give users more choices. Judge Donato’s decision will likely have far-reaching implications for the Android ecosystem. This opens the door to a huge shift in the power dynamics within the mobile app market. However, Google has already been open about its plan to appeal the ruling and is seeking an immediate stay to pause the changes during the appeal process.
