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 rišvals like āFortniteā maker Epic Games, a federal judge said Monday in a bombshell ruling that could topple the comšpanyās 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¦ jury found that Google operated illegal monopolies through the Play Store and its closely linked Android in-app billing system.
āYouāre going to end up paying something to mą²ake the worš¦©ld right after having been found to be a monopolist,ā Donato told Googleās lawyers in court.
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 lucrativeš¦¹ āPlay Storeā for Android apps, according to Donatoāš§s order.
Additionally, Google will be blocked from paying specific app developers to exclusively use iāts 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 Moānday.
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.
Epic Games did not immediately returź¦æn a request for comment on the judgeās decision.
Google will also be required to provide rival deveš¦©lopers with access to its āback catalog of apps. It canāt 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 āreasonable measuresā to ensure security. Google had argued that any bid to šforce 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 memberš.
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 šup to 30% on digital transactions made within the Play Store.
During the trial, Epicās legal team had focused on Googleās practice of making payments and striking deals with developers to sź¦tifle competition against the Play Store. Lawyers referred to the practice ā known internally as āProject Hugā ā as a ābribe and blockā scheme.
In one such case, Google provided $360 million in incentišves to šāCall of Dutyā maker Activision Blizzardā so that it would launch its games on the Play Store.
The judgeās ruling is just the latest sign of an escalating ą½§legal and reš gulatory crackdown against Google.
In August, US District Judge Amit Mehta determined that Google has an illegal monopoly over š§thš³e 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 likelš²y to pursue a forced breakup of Googleās empire.
With Post wires