US Judge Orders Google to Revamp Mobile App Business Following Epic Games Verdict
A US judge has ordered Google, a subsidiary of Alphabet, to make significant changes to its mobile app business. This decision follows a jury verdict last year favouring Fortnite creator Epic Games in its lawsuit.
Court Ruling Aims to Increase Competition in Android App Market
The ruling by US District Judge James Donato in San Francisco mandates providing Android users with more options for downloading apps and paying for in-app purchases. According to Donato’s order, these changes are designed to foster greater competition within Google’s Play Store by making it easier for users to access rival app stores and third-party platforms.
For the next three years, Google is prohibited from preventing the use of alternative in-app payment methods. It must also permit the downloading of competing third-party Android app stores. The injunction also restricts from paying device manufacturers to preinstall its Play Store app and from sharing revenue generated by the Play Store with other app distributors.
Google Plans to Appeal the Injunction
In response, Alphabet announced that it would appeal the verdict and seek a stay on Donato’s order pending the outcome of its appeal to the San Francisco-based 9th US Circuit Court of Appeals.
“While these changes may satisfy Epic, they will cause unintended consequences that could harm American consumers, developers, and device makers,” they said in a statement.
Epic Games’ CEO, Tim Sweeney, celebrated the decision on social media platform X (formerly Twitter), describing the ruling as “big news.” He noted that the Epic Games Store and other app stores would become available on Play Store by 2025. Sweeney added that app developers, store makers, and others now have three years to build a competitive Android ecosystem strong enough to ensure Google cannot undermine it.
Changes to Take Effect from November 1
Judge Donato stated that his order will go into effect on November 1, giving Google time to adjust its existing agreements and practices to comply with the new regulations. The ruling also requires the formation of a three-person technical committee to oversee the implementation and monitoring of the injunction. Epic and Google will each select a member, and those two members will jointly choose a third.
Background of Epic’s Lawsuit Against Google
Epic Games initially filed its lawsuit in 2020, accusing Google of monopolising the way consumers access apps on Android devices and dictating how in-app purchases are made. In December 2023, a jury sided with Epic, finding that Google had unfairly restricted competition through its controls over app distribution and payments.
Google had argued that Epic’s proposed reforms were costly and would pose risks to consumer privacy and security. However, Judge Donato dismissed these arguments, stating, “You’re going to end up paying something to make the world right after having been found to be a monopolist.”
Google’s Ongoing Legal Challenges
This ruling is part of a broader wave of antitrust scrutiny against Google. In a separate case in Washington, US District Judge Amit Mehta ruled in August that Google had illegally monopolised web search by spending billions to become the default search engine across various platforms. Additionally, Google is currently facing a trial in Virginia federal court over its dominance in the digital advertising technology market.
Despite these legal challenges, Google has denied wrongdoing in all three cases.
