Google Ordered to Open Its App Store to Rivals as Punishment for Illegal Monopoly in Epic Games Trial

• On Monday, a US federal judge ordered Google to make several changes to how it handles the Play Store. This was in response to a lawsuit filed by Epic Games.
• One of the decisions is that Google will have to allow rival Android apps on its Play Store for three years, from November 2024 to November 2027.
• Google is unhappy with the decision and has decided to appeal against it.

Google will have to allow Android apps developed by rival technology firms on its Play Store for a period of three years as a punishment for maintaining an illegal monopoly.

The decision was passed by U.S. District Judge James Donato on Monday regarding the lawsuit filed by Epic Games against Google.

History of the Lawsuit

The antitrust lawsuit was filed 4 years ago. Now, there were many accusations, but one of the primary ones was against Google's Play Store commission structure.

Basically, when users made an in-app purchase, they paid a commission of 15% to 30% to Google for the transaction. The tech giant was using this to make billions.

However, Epic Games tried to bypass this rule by allowing its users to make direct transactions. When Google found out about this, it responded by banning Fortnite, following which Epic Games hit back with a lawsuit.

In December last year, the case finally came to an end when a jury sided with Epic Games and accused Google of controlling app distribution and Android payments.

However, in September 2024, Epic Games filed another lawsuit (this time against Google and Samsung), accusing Google of undermining the jury order by colluding with Samsung and installing an auto blocker on all Samsung devices. An auto blocker ensures that the only convenient way users can download apps on their phones is through the Google Play Store.

You could try downloading applications through other sources if you want, but the process was extremely difficult and certainly not as plug-and-play as that of the Google Play Store. Plus, since this auto blocker came turned on by default on Samsung devices, a lot of users didn't even realize they're being restricted.

What Happens Now?

As mentioned before, the first order of business for Google is that it must open up the Play Store to rival apps for a period of three years starting next month.

During the aforementioned three-year term, Google will also not be able to share its revenue with any Android app distributors, pay any developers to launch their apps first or exclusively on its platform, or make any agreements with manufacturers to preinstall Google Play Store on any device.

Furthermore, the tech giant also won't be able to force apps to use its native billing system and it will have to allow its own catalogue of apps to be accessible on rival app stores. Keep in mind that Google has until November 2024 to make these changes.

What Does Google Have to Say About It?

As expected, Google is unhappy with the decision. It said that it would appeal against the decision and ask for a delay at the very least, as it feels that the November deadline is too short.

Google says that it will take at least 12-16 months to put protections in place to ensure that there are no malicious software sneaking their way into Samsung devices through rival app stores.

It also said that the measures taken are too extreme. All the changes and limitations can cost Google up to $600 billion. To this, Epic Games responded that a level playing field could be created with just $1 million as well.

In the end, Google also tried to refute the allegations by saying that its Play Store operates in a competitive environment, referring to its competition with Apple. However, the judge's decision remains unchanged.

It's also well worth noting that Apple was also sued by Epic Games in 2020. However, that case went largely in favor of Apple.

Read more:

• UK competition regulator accuses Google of anti-competitive ad practices
• Google has illegal monopoly over internet search

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