In a significant ruling, a California jury has determined that Google holds an illegal monopoly over its Android Play Store, compelling the tech giant to open its operating system to rival app stores. This decision marks another challenge for Google, following a previous federal ruling in August that deemed its search engine as monopolistic as well.
What does the verdict mean?
The court’s order mandates that Google must allow users to utilize alternative in-app payment methods for a period of three years. Additionally, it requires the company to permit the download of competing third-party Android app stores. Key restrictions include:
- Prohibiting Google from making payments to smartphone manufacturers for preinstalling its app store.
- Preventing the sharing of revenue generated from the Play Store with other app distributors.
To ensure compliance with these changes, the judge has established a three-person Technical Committee tasked with overseeing the implementation and addressing any disputes that may arise. The order is set to take effect on November 1, with certain provisions required to be in place by July 1.
How did Google react?
In response to the ruling, Google has announced its intention to appeal. The company contends that the mandated changes could lead to a variety of unintended consequences detrimental to American consumers, developers, and device manufacturers. Lee-Anne Mulholland, Google’s vice president of regulatory affairs, expressed the company’s commitment to advocating for the interests of developers, device makers, and the vast community of Android users worldwide.
Currently, devices running on Android software account for approximately 70% of the global smartphone market. Smartphone manufacturers can install the Android app at no cost, provided that the Play Store remains prominently featured on the home screen and that other Google applications are pre-installed.
