- A US judge issued a permanent injunction forcing Google to offer alternatives to its Google Play store for downloading apps on Android phones.
- Google will be restricted from paying fees or sharing revenue with companies in exchange for them choosing not to compete with Google’s app store.
- Epic Games and Google will form a three-person committee to review technical issues related to Google’s compliance with the ruling.
A U.S. judge issued a permanent injunction on Monday that will require Google to offer alternatives to its Google Play store for downloading apps on Android phones. This is the most significant outcome so far of Epic Games‘ antitrust lawsuit against Google, which began in 2020.
Background of the Lawsuit
The ruling came from Judge James Donato in California. Epic Games, maker of the popular game Fortnite, sued Google in 2020, accusing the company of anti-competitive practices. These included paying hardware companies and Android phone makers to not develop competing app stores.
Details of the Injunction
According to the court filing, for the next three years Google will not be allowed to:
- Pay companies to launch apps exclusively or first on Google Play
- Pay companies so they do not compete with Google Play
- Pay companies to preinstall Google Play on new devices
- Require app makers to use Google Play Billing or prohibit them from telling users about cheaper options on their websites. Google Play takes between 15% and 30% of in-app purchases as a fee from large app makers.
Google will also have to allow competing Android app stores access to Google Play’s catalog of apps.
Impact on the App Marketplace
The decision could allow developers to keep more of their revenue by bypassing Google’s fees or rules. Consumers spent $124 billion on apps in 2023, according to Sensor Tower.
Google and Apple’s app stores typically take 15-30% of sales from high-grossing apps. Opening up the Android marketplace could give developers a bigger share of the pie.
Google’s Response
Google said in a blog post it will ask the court to pause the changes and appeal the decision. An Epic Games representative did not immediately respond to a request for comment.
Conclusion
This is a major development in the ongoing legal battle between Epic Games and Google over control of the lucrative mobile app market. The injunction places significant restrictions on how Google can operate its Play Store on Android phones. It remains to be seen how Google will respond and whether this will ultimately lead to a more open app ecosystem on Android devices.
