A federal judge has mandated significant changes to Google’s Play app store, following a legal challenge initiated by Epic Games in 2020. Judge James Donato’s ruling requires Google to allow rival app stores on its platform and to make its entire app catalogue accessible to competitors, unless developers choose to opt out individually.
Legal Background
This decision stems from a jury trial held in December, which concluded that Google’s Android app store and its billing service constituted an illegal monopoly. The jury also identified several agreements between Google and various companies, including game developers and phone manufacturers, as anticompetitive practices. Judge Donato emphasized that these agreements must cease.
‘Tear the barriers down’
In remarks made during remedy hearings, Donato expressed a commitment to dismantling barriers within the app ecosystem. “We’re going to tear the barriers down, it’s just the way it’s going to happen,” he stated. The ruling largely favored Epic’s requests for remedies, dismissing Google’s claims that compliance would be overly burdensome or costly. However, the judge limited the duration of these measures to three years, a reduction from the six years Epic had sought.
Donato also declined Epic’s request for a simplified sideloading process for apps and ruled against prohibiting Google from linking Android APIs to the Play Store. He clarified that the provisions aim to create a more equitable environment for competitors while ensuring Google is not excessively hindered in its own competitive efforts.
Implementation Timeline
The ruling is set to take effect on November 1, granting Google an initial eight months to devise a strategy for implementing the mandated changes. A technical committee, comprising three members chosen jointly by Epic and Google, will oversee this process. Initially, Google had estimated a timeline of 12 to 16 months to establish safeguards against malware in a more open system.
Key measures include preventing Google Play’s billing system from maintaining its dominance by prohibiting the requirement of its billing system for apps distributed through the Play Store. Additionally, Android developers will be allowed to inform users about alternative payment methods within the Play Store.
Restrictions on Practices
The ruling imposes strict limitations on Google’s practices, including:
- Banning Google from sharing app revenue with those who distribute Android apps or plan to launch an app store.
- Prohibiting incentives for developers to launch exclusively on the Play Store.
- Restricting incentives for device manufacturers or carriers to preinstall the Play Store or to avoid preinstalling rival app stores.
Judge Donato asserted that these regulations would provide rival app stores with a viable opportunity to establish themselves in the market.
Google’s Response
In light of the ruling, Google has expressed concerns that the changes could lead to “a range of unintended consequences that will harm American consumers, developers, and device makers.” The company has indicated its intention to seek a “pause” on the order and plans to appeal the decision.
It is noteworthy that Epic Games had also pursued legal action against Apple on similar grounds, although the court largely sided with Apple in that case. Meanwhile, the European Union is actively working to enforce new regulations under the Digital Markets Act, aimed at compelling Apple to open its App Store to competition within the bloc.
