Epic Ruling: Google ordered to open Android app store

In a major antitrust ruling that’s winner winner chicken dinner for Epic Games, a US judge has issued a permanent injunction requiring Google to allow alternatives to its Google Play store for app downloads on Android phones.

This decision, stemming from Epic Games’ lawsuit, represents a significant outcome in the ongoing antitrust battles between Epic and major tech companies. The court ruling also restricts Google from paying fees or sharing revenue with companies to discourage competition with its app store. 

Notably, Alphabet’s stock fell by over 2% following the news.

The lawsuit, which began in 2020, accused Google of anti-competitive practices, such as paying hardware manufacturers to not develop competing app stores. 

The ruling now prevents Google from making exclusive deals with app developers or mandating Google Play Billing, a system that typically takes 15% to 30% of sales from large app developers. This shift could allow developers to keep more of their revenue by sidestepping Google’s payment system.

Key outcomes of the ruling are that Google cannot pay companies to exclusively use or preinstall Google Play; developers will have more freedom to use alternative billing methods; competing app stores will gain access to Google Play’s app catalog; and Google will need to permit third-party app stores on its Play store.

The injunction will remain in effect for three years, and a committee will oversee Google’s compliance.

Epic Games’ CEO, Tim Sweeney, has welcomed the decision, but stressed that the ruling applies to the US only and that the company is keen to continue the legal battle around the world.

 

Google pushed back against the ruling, stating that it will appeal the decision and seek a pause on implementing the required changes. In its official response, Google argued that the ruling is based on a flawed understanding of the app store market, pointing out that Apple and Android compete directly. Google also emphasized that Android is an open platform, unlike iOS, which already allows for multiple app stores and sideloading apps.

This decision follows a similar but largely unsuccessful lawsuit Epic brought against Apple over its App Store policies.

Google’s appeal process may delay some of the required changes, but for now, the ruling represents a win for developers and alternative app stores.

Share this Post:

Accessibility Toolbar