A U.S. federal judge has ruled against Alphabet Inc.'s Google, mandating changes to its mobile app market operations. The decision requires Google to allow Android users to access and download apps from competing app stores and use alternative in-app payment methods. This injunction follows a previous lawsuit victory by Epic Games, where Google’s practices in app distribution and in-app payments were deemed anti-competitive.
Per the court's order, Google is prohibited from blocking third-party in-app payment systems and must permit the download of competing third-party Android app platforms or stores for three years. The order also restricts Google from paying device manufacturers to pre-install its app store and sharing Play Store revenue with other app distributors. These measures aim to enhance competition in the app marketplace by eliminating certain exclusive and revenue-sharing agreements.
Google plans to appeal the ruling, seeking a suspension of the mandate during the appeals process, which will be heard by the Ninth Circuit Court of Appeals in San Francisco. The ruling negatively impacted Alphabet's stock, with shares closing down 2.5% at $164.39. Google has expressed concerns that the decision may have unintended consequences, potentially affecting consumers, developers, and device manufacturers in the U.S. negatively.
To oversee the injunction's implementation, Judge James Donato has directed Epic and Google to form a three-member technical committee. Each company will select one member, and these two members will jointly choose the third member.
The injunction is set to take effect on November 1, allowing Google time to adjust its practices accordingly. Epic Games initiated the lawsuit in 2020, accusing Google of monopolizing app access and transactions on Android devices. A jury verdict in December 2023 supported these claims, leading to the current injunction.
In another antitrust case, a different federal judge, Amit Mehta, ruled in favor of the U.S. Department of Justice on August 5, asserting that Google illegally monopolized online search. Additionally, Google began defending its dominance in the ad tech market in a Virginia federal court in September. Despite these legal challenges, Google consistently denies all allegations of monopolistic behavior in each case.
