On Monday, a U.S. judge ordered Google to allow rival app stores access to its Android operating system, marking another legal setback for the tech giant. This ruling follows Google’s loss in an antitrust case filed by Epic Games, creator of Fortnite, where a California jury determined that Google holds an illegal monopoly over its Android Play Store.
In December, a San Francisco jury swiftly concluded that Google employed unlawful tactics to maintain its dominance in the Android app market. This new order prohibits Google, for the next three years, from engaging in practices deemed anti-competitive, including revenue-sharing agreements and restrictions that force developers to use the Play Store exclusively for app launches.
Additionally, a three-person Technical Committee has been mandated to oversee the implementation of these changes and resolve disputes. Google’s appeal of the ruling is underway, with the company requesting the injunction be suspended during the appeal process.
Google faces similar legal challenges, including a separate antitrust lawsuit over its control of online advertising. The company was also found guilty in August of running an illegal monopoly over its search engine.
The Ruling’s Impact on Google
Currently, Android powers around 70% of the world’s smartphones. While smartphone manufacturers use Android for free, they are typically required to keep the Play Store on the home screen and pre-install other Google apps. The jury found that Google’s illegal practices ensured the Play Store was the exclusive payment platform for apps like Fortnite.
Epic Games, which also fought a similar case against Apple, argued that developers should be allowed to process payments for apps outside of Google’s Play Store, which charges commissions of up to 30%. Though Epic lost its case against Apple, the ongoing legal battle with Google could reshape the mobile app ecosystem if rival app stores are allowed greater access to Android.
Both Google and Apple claim that their app store commissions are industry-standard, covering essential services like security, broad reach, and protection against malware. However, Google’s agreements with smartphone manufacturers were revealed in court to generate tens of billions of dollars in revenue through the Play Store, raising questions about its competitive practices. The company paid smartphone manufacturers a share of this revenue to make the Play Store the exclusive gateway for payments, a practice now deemed illegal.
