A U.S. judge has ruled against Google (GOOG, GOOGL) in a lawsuit filed by Epic Games, declaring that Google's Android app store practices constitute illegal monopolization. Google is mandated to open its Google Play Store to rival app stores within three years after the ruling takes effect.
According to the judgment, Google must distribute third-party app stores on Google Play and allow these stores access to its full app directory unless developers opt out. This was one of Epic's main demands in the lawsuit.
From November 1, 2024, to November 1, 2027, Google will also be required to cease mandating the use of Google’s payment system for apps within the Play Store and permit Android developers to inform users about alternative payment options. Developers will be allowed to provide direct download links outside of the Play Store and set app prices freely without restrictions from Google’s billing system.
Google is further restricted from sharing app revenue with entities launching app stores, offering monetary incentives for exclusive Play Store releases, preventing developers from listing on competitor app stores, and providing benefits to manufacturers or carriers for pre-installing the Play Store or avoiding competitor app stores.
Despite these changes, Google will maintain some control over Play Store security and may implement necessary measures for managing security concerns, although these must be precisely targeted and comparable to its current practices. These measures may incur fees.
The judge has given Google eight months to develop a system overseen by a technical committee formed by both Epic and Google to manage disputes. Epic did not succeed in extending the open period for Google Play from three to six years or in allowing easier sideloading options for users.
Epic's litigation against Apple, which began simultaneously, has mostly concluded in Apple's favor, with only minor victories for Epic. However, the proceedings against Google have revealed significant antitrust behaviors, including unfair dealings with developers and exclusive agreements with manufacturers.
Google plans to appeal the decision, potentially requesting a stay on the judge's order, similar to Apple's approach in their lawsuit. Recently, Epic initiated another lawsuit against Google and Samsung, alleging that they complicated third-party app store operations to bypass impending restrictions.
