A United States judge has mandated a significant transformation in Alphabet’s Google mobile app ecosystem, enhancing the options available to Android users for downloading applications and managing in-app transactions. This ruling follows a jury’s decision last year in favor of Epic Games, the creator of Fortnite, which accused Google of monopolistic practices.
US District Judge James Donato, presiding in San Francisco, issued an injunction on Monday that delineates the necessary changes Google must implement to foster a more competitive environment within its Play Store. The order specifically prohibits Google from restricting the availability of Android apps from alternative sources, thereby allowing users to download third-party app platforms or stores.
According to Donato’s ruling, Google is barred from prohibiting the use of alternative in-app payment methods for a period of three years. Additionally, the company cannot incentivize device manufacturers to preinstall its app store or share revenue generated from the Play Store with other app distributors.
In light of the ruling, Alphabet’s stock experienced a decline of 2.5 percent, closing at 4.39 on Monday. Judge Donato has also mandated the formation of a three-person technical committee, comprising representatives from both Epic and Google, to oversee the implementation and monitoring of the injunction.
Google to appeal
In response to the ruling, Google announced its intention to appeal the verdict to the 9th US Circuit Court of Appeals, seeking a stay on Donato’s order while the appeal is pending. The company expressed concerns that the mandated changes, while seemingly favorable to Epic, could lead to unintended consequences detrimental to American consumers, developers, and device manufacturers.
Judge Donato has set a compliance deadline of November 1 for Google, allowing the company time to align its current agreements and practices with the new requirements. Epic Games initiated the lawsuit in 2020, alleging that Google had monopolized access to apps on Android devices and controlled the payment mechanisms for in-app purchases. The jury’s decision in December 2023 affirmed Epic’s claims, leading to the current injunction.
During the proceedings, Google argued against the proposed reforms, labeling them as costly and overly restrictive, with potential risks to consumer privacy and security. However, Judge Donato largely dismissed these concerns, emphasizing the need for accountability in light of Google’s monopolistic findings. “You’re going to end up paying something to make the world right after having been found to be a monopolist,” he remarked to Google’s legal team.
This ruling is part of a broader scrutiny of Google’s business practices, as the company faces additional antitrust challenges. In a separate case, US District Judge Amit Mehta ruled in favor of the US Justice Department, determining that Google had illegally monopolized web search, and in September, a trial commenced regarding its dominance in advertising technology.
Google has consistently denied all allegations across these various cases, maintaining its stance against claims of monopolistic behavior.
