A U.S. federal judge has ordered Google to open its Play Store app to competitors after it lost an antitrust lawsuit brought by Epic Games, maker of the free multi-player game Fortnite.
Epic’s lawsuit
Epic filed its lawsuit in 2020, accusing Google of monopolizing how Android device owners access apps and pay for transactions on its Play Store app platform.
In December 2023, a jury agreed with Epic’s lawsuit that Google had unlawfully oppressed its competitors by controlling app distributions and payments on Android devices.
Google tried in vain to convince Judge James Donato to refuse Epic’s requested reforms to its app store, saying Epic’s suggestions were extreme, could cost the company $600 billion, and impact its consumer’s privacy and security.
Judge Donato dismissed most of Google’s counterarguments.
The Judge’s order
Judge James Donato issued the order stating that Google must allow Android app platforms or stores made by rival tech firms to appear on its app store for three years starting in November 2024, allow in-app payment methods, and enable users to download and purchase from the platform.
Judge Donato’s order also restricts Google from paying Android device manufacturers to pre-install its app store and from distributing any revenue it generates from its app store with other app distributors.
Donato’s injunction will take effect on November 1; the Judge said this would give Google ample time to “Bring its current agreements and practices into compliance.”
Upon the ruling, Judge Donato told Google’s lawyers:
- “You’re going to end up paying something to make the world right after having been found to be a monopolist.”
What legal experts are saying
Legal experts say the ruling could change the app landscape by challenging the tech giant’s market dominance and reducing consumer prices.
Vanderbilt law school professor Rebecca Haw Allensworth said:
- “It shows that courts are not necessarily opposed to asking dominant platforms to share access with rivals in the name of competition.”
Mark Lemley, a Stanford law school professor, spoke about violating antitrust laws and being made to do the right thing:
- “That isn’t something antitrust law would normally require. But the Judge correctly noted that once you have violated the antitrust laws, courts can order you to do affirmative things to undo the harm you caused, even though you didn’t have the obligation to do those things.”
American Economic Liberties Project Senior Legal Counsel Lee Hepner said the ruling should reduce Google’s (on average 30%) fee on every purchase made via its app store, lowing consumer prices and encouraging competition:
- “There’s going to be a lot more incentive for developers to enter this market, and prices should be lower for consumers,”
Google will appeal
Google plans to appeal the injunction, insisting it would take at least 12 months to design and implement the safeguards required to reduce malicious software infiltrating its rival’s app stores that might affect millions of mobile devices using its free Android software.
Google said in its statement:
- “The changes would put consumers’ privacy and security, make it harder for developers to promote their apps, and reduce competition on devices.”
Google can ask the San Francisco Ninth U.S. Circuit Court of Appeals to pause Judge Donato’s injunction pending their appeal.