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GoogleĀ must open up lucrative app store to rivals after historic ‘Fortnite’ verdict, judge rules

Google must open up its Android app store to competition from smaller rišŸ”œvals like ā€œFortniteā€ maker Epic Games, a federal judge said Monday in a bombshell ruling that could topple the comšŸŽ€panyā€™s dominance over the app market.

The sweeping remedies outlined by US District Judge James Donato in San Francisco federal court came months after North Carolina-based Epic Games won a stunning verdict against Google. Last December, aź¦œ jury found that Google operated illegal monopolies through the Play Store and its closely linked Android in-app billing system.

ā€œYouā€™re going to end up paying something to mą²žake the woršŸ¦©ld right after having been found to be a monopolist,ā€ Donato told Googleā€™s lawyers in court.

A judge ordered Google to overhaul its mobile app business to give Android users more options to download apps and to pay for transactions within them. AFP via Getty Images

For the next three years, Google will be barred from preventing app developers from using their own in-app payment systems or from directing users to download apps from sources outside its lucrativešŸ¦¹ ā€œPlay Storeā€ for Android apps, according to Donatoā€™šŸ§œs order.

Additionally, Google will be blocked from paying specific app developers to exclusively use iā™Šts Play store for distribution and barred from sharing revenue generated by its Play Store with other app store operators.

Shares of Google parent Alphabet sank more than 2% in trading Moā™nday.

Google said it would ask the court to pause the judge’s changes pending the outcome of its ongoing appeal of the jury’s verdict.

“Ultimately, while these changes presumably satisfy Epic, they will cause a range of unintended consequences that will harm American consumers, developers and device makers,” Google said in a blog post.

ā€œYouā€™re going to end up paying something to make the world right after having been found to be a monopolist,ā€ Judge James Donato told Googleā€™s lawyers in court. U.S. Distrct Court – Northern District of California

Epic Games did not immediately returź¦æn a request for comment on the judgeā€™s decision.

Google will also be required to provide rival devešŸ¦©lopers with access to its ā™back catalog of apps. It canā€™t offer deals to smart device makers or carriers to preinstall the Play Store.

The preliminary injunction is slź¦‘ated to take effect on Nov. 1 and run through the same date in 2027.

Donato said Google will be permitted to take ā€œreasonable measuresā€ to ensure security. Google had argued that any bid to šŸ’žforce open its app store would place user privacy and devices at risk.

The judge ordered the creation of a three-person committee to oversaw compliance of his order, with Epic and Google each appointing one member and those two selections choosing a third memberšŸ’ž.

Epic Games, the maker of “Fortnite,” persuaded a jury in December that Google unlawfully stifled competition through its controls over app distribution and payments. AFP via Getty Images

Epic Games and other critics have alleged for years that Google has a stranglehold over the app marketplace, where it has traditionally pocketed commissions of š“†up to 30% on digital transactions made within the Play Store.

During the trial, Epicā€™s legal team had focused on Googleā€™s practice of making payments and striking deals with developers to sź¦štifle competition against the Play Store. Lawyers referred to the practice ā€“ known internally as ā€œProject Hugā€ ā€“ as a ā€œbribe and blockā€ scheme.

In one such case, Google provided $360 million in incentiš”ves to š’ƒā€œCall of Dutyā€ maker Activision Blizzardā€ so that it would launch its games on the Play Store.

Google provided $360 million in incentives to ā€œCall of Dutyā€ maker Activision Blizzardā€ so that it would launch its games on the Play Store. Getty Images

The judgeā€™s ruling is just the latest sign of an escalating ą½§legal and rešŸ…gulatory crackdown against Google.

In August, US District Judge Amit Mehta determined that Google has an illegal monopoly over šŸ’§thšŸŒ³e online search market. He is expected to decide on apprź¦ŗopriate penalties by next summer.

Separately, Google is facing off against the Justice Department in a separate federal antitrust case aimed at its alleged monopoly over digital advertising technology.

In boź¦°th cases, the feds are likelšŸ²y to pursue a forced breakup of Googleā€™s empire.

With Post wires