What you need to know
- A federal judge recently ruled in the Epic v. Google antitrust case, deeming the latter’s Google Play Store service an illegal monopoly.
- Google will be required to make several changes to its service, including opening Google Play to third-party app stores for three years with access to the entire catalog of Google Play apps to foster fair competition.
- Google is seeking an immediate stay before the permanent injunction takes effect on November 1, 2024, as it plans to appeal the verdict.
As an observer with years of watching tech companies navigate antitrust lawsuits under my belt, I can’t help but feel a sense of déjà vu as I read about the Epic v. Google case. It seems that Google has once again found itself in hot water over its app store practices, with a federal judge ruling it an illegal monopoly.
In the recent court case between Epic Games and Google, Judge James Donato delivered his final decision this week, labeling Google Play Store as an antitrust violation. The judge’s verdict emphasized necessary adjustments, such as granting third-party app stores access to Google Play’s entire library of apps for a period of three years.
As a researcher, I’m sharing an update: The recent jury decision has revealed that Google had unlawfully linked their payment system to their app store, exclusive to the Google Play Store. Consequently, this practice will no longer be valid moving forward. Furthermore, Google is now prohibited from offering financial incentives to companies for exclusively launching apps on Google Play or pre-installing their app store on devices.
The modifications will be implemented between November 1, 2024, and November 1, 2027, unless delayed due to an appeal. After the court decision, Alphabet’s stocks dropped by 2.4%, suggesting that investors are worried about the verdict and its potential impact on the company’s future earnings.
Google the following statement addressing the Judge’s ruling on the case:
The court’s decision in the Epic case overlooked the fact that Apple and Android are rivals. We plan to challenge this verdict, and request the courts to delay enacting any remedies to ensure a stable and secure environment for both users and developers during the ongoing legal proceedings.
Previously, I observed Epic Games contending that Google’s business strategy fostered an unfair competitive landscape. Google leveraged enticing agreements to guide developers, manufacturers, and service providers towards its own interests, creating challenges for independent app marketplaces to thrive equitably. However, it’s crucial to mention that although changes are being implemented, Google will retain substantial influence over safety and security as they expand the Google Play Store to accommodate third-party app stores.
According to Tim Sweeney, Epic Games CEO:
2025 will see the arrival of platforms like the Epic Games Store and other third-party app stores on the Google Play Store within the USA. This is due to the favorable verdict in the case Epic v Google, which means these stores will be free from Google’s intimidating welcome screens and the 30% app fee traditionally charged by Google.
In simpler terms, the Judge has given Google approximately eight months to establish a new system. This system will include a three-person technical committee, half chosen by Epic and half by Google, who will jointly decide on disputes related to the ruling. Additionally, this system aims to provide a means for developers to choose not to be featured in competing Android app stores.
Nevertheless, Judge Donato’s verdict didn’t constitute an uncontested victory for Epic Games. The firm initially sought permission from the court to dismantle the Google Play Store barriers for a period of six years, enabling users to quickly install third-party apps with a single tap. Additionally, they aimed to prevent Google from linking Android APIs to the Google Play platform.
The Judge addressed some of these concerns while delivering his ruling and indicated:
The rules aim to make it fair for new competitors to enter and grow, while not putting too much pressure on Google. As competition increases and Google Play’s unfair advantage is reduced, Google should not face unnecessary restrictions when competing.
Google has filed a lawsuit to challenge the decision and is pushing hard for a temporary halt before the final order becomes enforceable in early next month. In a statement, they expressed their commitment to continue fighting for the interests of developers, device manufacturers, and the vast number of Android users worldwide.
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2024-10-08 20:39