The legal confrontation ignited when Epic Games grew weary of relinquishing a hefty 30 percent of its sales to tech giants Google and Apple. This dispute has now reached a pivotal moment, as a recent ruling authored by Judge Margaret McKeown has upheld the jury’s verdict, dismissing Google’s objections with a clear assertion of antitrust violations.
Judge McKeown stated, “The record was replete with evidence that Google’s anticompetitive conduct entrenched its dominance, causing the Play Store to benefit from network effects.” Her ruling not only supports the liability verdict but also endorses the comprehensive injunction aimed at reshaping the landscape of app distribution.
A new era for apps
As Google finds itself cornered, the company is rapidly exhausting its legal options to sidestep the necessity of overhauling its approach to Android applications. Following the unsuccessful appeal, Google is contemplating whether to escalate the matter to the US Supreme Court, although the likelihood of the court agreeing to hear the case remains uncertain.
Lee-Anne Mulholland, Google’s Vice President of Regulatory Affairs, expressed concerns about the implications of the ruling, stating, “This decision will significantly harm user safety, limit choice, and undermine the innovation that has always been central to the Android ecosystem.” She emphasized that the company’s primary focus continues to be the protection of users and developers while maintaining a secure platform throughout the appeal process.
In the interim, Google has successfully secured a suspension of Donato’s 2024 order as it navigates the appeal. However, with another antitrust defeat under its belt, the company may soon be compelled to implement a series of transformative changes. Among these adjustments, Google will be required to cease mandating developers to utilize its Google Play billing system, thereby allowing third-party payment options that could enhance revenue for developers.
Furthermore, Google must refrain from providing incentives to developers for launching content exclusively on its platform for a duration of three years. The ruling also mandates a fundamental shift in how users access Android applications, compelling Google to make its entire Play Store catalog available for distribution through alternative app stores, while allowing developers the option to opt out of wider availability.
Perhaps the most significant blow to Google’s current model is the requirement to permit third-party app stores to be distributed within the Google Play environment. In response to this landmark ruling, Epic CEO Tim Sweeney celebrated the decision, announcing plans to introduce the Epic Games Store on Google Play in the near future.
