What you need to know
- A federal judge recently ruled in the Epic v. Google antitrust case, deeming the latter’s Google Play Store service an illegal monopoly.
- Google will be required to make several changes to its service, including opening Google Play to third-party app stores for three years with access to the entire catalog of Google Play apps to foster fair competition.
- Google is seeking an immediate stay before the permanent injunction takes effect on November 1, 2024, as it plans to appeal the verdict.
Earlier this week, the legal battle between Epic Games and Google ended after Judge James Donato issued his final ruling, deeming Google Play Store an illegal monopoly. Donato’s ruling highlighted several changes that need to be made, including opening Google Play to third-party app stores for three years with access to the full catalog of Google Play apps.
Google’s limitation to Google Play Billing for apps distributed on the Google Play Store will no longer stand after the jury established the company had illegally tied the payment system to its app store. Additionally, Google won’t be able to pay companies to exclusively launch apps on its Google Play Store or even to preinstall the company’s app store on devices.
The new changes will take effect from November 1, 2024, to November 1, 2027, unless blocked by an appeal. Following the ruling, Alphabet’s shares fell by 2.4%, indicating investors are concerned about the judgment and its long-term implication for the company’s profitability.
Google the following statement addressing the Judge’s ruling on the case:
“The Epic verdict missed the obvious: Apple and Android clearly compete. We will appeal and ask the courts to pause implementing the remedies to maintain a consistent and safe experience for users and developers as the legal process moves forward.”
Epic Games previously argued that Google’s business model created an unhealthy environment for competition. Google used lucrative deals to steer developers, device makers, and carriers toward its direction, making it difficult for third-party app stores to compete on an even playing field. It’s worth noting that despite the highlighted changes, Google will have significant control over safety and security as it opens up the Google Play Store to third-party app stores.
According to Tim Sweeney, Epic Games CEO:
“The Epic Games Store and other app stores are coming to the Google Play Store in 2025 in the USA — without Google’s scare screens and Google’s 30% app tax — thanks to victory in Epic v Google.”
The Judge granted Google eight months to create a new system featuring a three-person technical committee jointly selected by Epic and Google to review disputes flagged about the ruling. The system is also slated to create an avenue for developers to opt out of being listed in rival Android app stores.
However, Judge Donato’s ruling wasn’t a have-your-cake-and-eat-it slam dunk for Epic Games. The company initially asked the court to crack open the Google Play Store for six years, allowing users to sideload third-party apps in a single tap. It also wanted Google to stop tying Android APIs to Google Play.
The Judge addressed some of these concerns while delivering his ruling and indicated:
“The provisions are designed to level the playing field for the entry and growth of rivals, without burdening Google excessively. As competition comes into play and the network effects that Google Play unfairly enjoys are abated, Google should not be unduly constrained as a competitor.”
Google has already moved to court to appeal the verdict and is actively seeking an immediate stay before the permanent injunction takes effect at the beginning of next month. “We will keep advocating for what is best for developers, device manufacturers, and the billions of Android users around the world,” the company concluded.
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