Google Loses Epic Court Case And Is Ordered To Open Android For Third-Party Stores

There are plenty of apps in the sea!

Unfortunately, Google had a problem with some of these big fishes, leading to the tech conglomerate blocking some of them on their Play app store platform.

In a legal battle that began four years ago, Epic Games and Google have finally reached a significant milestone with US District Judge James Donato, with the judge providing a final ruling after almost a year of court sessions.

The ruling tackles key antitrust issues related to Google’s dominance in the mobile app store market.

What Did Judge James Donato's Final Ruling Say?

 

• In his final ruling, Judge Donato issued a permanent injunction that requires Google to allow third-party app stores on its platform without interference.

• The ruling addresses restrictions Google placed on alternative app stores operating in the Android ecosystem, stating that these practices were anti-competitive.

• The order goes into effect immediately and requires Google to comply by loosening control over its app distribution policies.

• This means that third-party stores like Epic's Fortnite can compete without obstacles from Google.

• A month after the two companies began arguing their case in November 2023, the jurors sided with Epic on all counts after a few hours of deliberations. 

What Google Can’t Do

 

• Google can no longer block or stand in the way of users accessing third-party app stores on its platform, even if included in its Play Store’s policies.

• The ruling disallows Google from forcing developers to use Google’s in-app payment system, opening the door for more flexible payment options.

• Furthermore, the company can’t engage in contracts or agreements that hamper or restrict developers from using third-party app stores, as well as alternative payment methods.

What Google Can Do

 

• The ruling clarified that Google can still implement security measures to protect users against harmful apps as long as these measures do not restrict fair competition.

• The company can charge developers fees for the services and infrastructure it provides, as long as they do not push down third-party stores.

• It can also still operate its Play Store as the primary app store on Android, however, it will not be able to hold a monopoly by blocking competitors.

What Is The History Of The Case?

 

• Epic Games first filed its lawsuit against Google in 2020 after Fortnite was removed from the Play Store for “violating Google’s payment policies”.

• In response, Epic argued that Google’s policies were anti-competitive and were forcing developers to comply with Play Store fees and policies, a move that took undue advantage of its dominance in the Android market.

• The two companies endured multiple hearings that spanned insights and investigations into Google’s practices regarding app store dominance, payments and developer restrictions.

• Epic’s case with Google ran alongside another one the gaming giant had against Apple. However, in the latter case, Apple largely won.

The main effect of the ruling comes in the promotion of competition in the app store space, which is set to increase. This will benefit developers, third-party app stores and mainly users, who will now get access to more apps and payment systems.

However, there is a chance that Google could appeal this decision. Alternatively, the tech giant could implement a host of changes that mitigate the impact of the ruling.

Do you think this ruling will succeed in reshaping the competitive landscape of app distribution and fostering better competition?

Let us know in the comments below!