Google has just suffered a major setback in its legal battle with Epic Games. On Monday, a federal judge in San Francisco issued a ruling that could be a game-changer for the Android app market. After being found guilty of abuse of a dominant position last December, Google will have to open its Play Store to more competition. A victory for developers, but also potentially for users.
Judge orders major changes to Android
It’s not just Apple that is accused of anti-competitive practices by Epic Games. On Monday, Judge James Donato delivered his verdict in the lawsuit pitting Epic Games against Google from 2020. He issued a permanent injunction forcing Google to provide more options for Android users to download apps and make in-app purchases. app, outside of the Play Store.
For 3 years, Google will no longer be able to:
- Paying companies to launch apps exclusively on the Play Store
- Prevent competing app stores from accessing the Play Store catalog
- Impose your payment system on developers or prevent them from promoting cheaper options
Google will also have to allow the installation of third-party app stores directly from the Play Store. A committee of 3 people, including representatives from Google and Epic, will oversee the implementation of these changes.
The real news is that an American judge is asking Google to open its store. In fact, recent developments in European regulations related to DMA and DSA are beginning to be transposed to the rest of the world.
A victory for developers, a setback for Google
Last December, a jury ruled in favor of Epic, finding that Google was abusing its dominant position on Android. With this injunction, developers could recover a greater share of the $124 billion spent on apps in 2023, bypassing the 15 to 30% commissions charged by Google.
This is a major setback for the web giant, whose shares fell more than 2% after the announcement. Google plans to appeal to suspend these changes, which are due to come into force in November. But for Tim Sweeney, boss of Epic, this leaves 3 years for players in the Android ecosystem to build a viable alternative to the Play Store.
Anti-competitive practices singled out
For several years, Epic has accused Google and Apple of imposing their app stores and payment systems, by charging commissions considered excessive. During the trial, the Fortnite publisher highlighted agreements made by Google with manufacturers to lock down the distribution of apps, and messages discouraging the “sideloading” of third-party apps on Android.
A strategy which backfired against Google, whose practices have been widely documented internally. Unlike its lawsuit against Apple, which Epic lost, the one against Google was decided by a jury. But the web giant faces other antitrust lawsuits, on online search and advertising. Crucial legal battles, which could reshape the digital landscape in the coming years.
