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Google ordered the opening of the Android app store for the trial version of Epic Games

Character actors from the Epic Games Fortnite video game dance during the E3 Electronic Entertainment Expo in Los Angeles on June 12, 2019.

Kyle Grillot | Bloomberg | Getty Images

A US judge issued a preliminary injunction on Monday that would take coercive measures Google to offer alternatives to its Google Play Store for downloading apps to Android phones.

Google will also be prevented from paying fees or sharing revenue with companies if they choose not to compete with Google's App Store. Alphabet shares fell sharply on the news, losing more than 2% on Monday.

California Judge James Donato's ruling is the most significant outcome of Epic Games' antitrust lawsuit against Google, which began in 2020. The Fortnite maker accused Google of anti-competitive practices, including paying hardware companies and Android phone makers not to develop competing app stores.

The decision could result in developers getting a larger share of the market, as both Google and Apple's app stores typically capture between 15 and 30% of total revenue for high-grossing apps. Google Play's new restrictions may allow developers to earn more revenue by bypassing Google's rules or fees.

According to Sensor Tower, consumers spent $124 billion on apps in 2023.

According to the filing, Google will not be able to do so for three years starting in November:

  • Pay companies to publish apps exclusively or first on Google Play
  • Pay companies not to compete with Google Play
  • Pay companies to pre-install Google Play on new devices
  • Require app makers to use Google Play Billing, or prohibit app makers from informing their users about cheaper online goods on their website (Google Play charges between 15% and 30% of in-app fees to major app makers). App purchases as a fee).
  • Google must also allow competing Android app stores to access the Google Play app catalog
  • Google must offer third-party Android app stores in its Google Play app store.

Epic Games and Google will also form a three-person committee that will review technical issues related to Google's compliance, the filing said.

Epic Games publishes titles like Fortnite that are monetized through in-app purchases of character costumes and other so-called “skins,” and in 2020 challenged Google and Apple's contractual control over mobile app distribution by offering cheaper purchases of Fortnite's in-app games offered. In-game currency, violation of app store rules and initiation of lawsuits.

Epic Games prevailed against Google late last year, and Monday's filing details the changes Google needs to make. Epic Games largely lost in a very similar lawsuit against Apple and its control of the App Store. The case against Google was decided by a jury. The case against Apple was decided by a judge.

During the Google test, Epic Games focused on whether Google blocked the App Store market through deals with mobile phone manufacturers and whether it discouraged users from using Android's sideloading feature through security warnings to install apps from the Internet.

Epic Games CEO Tim Sweeney previously said that Google's corporate culture contributed to Epic's victory because Google officials often wrote down or documented business practices in emails or communications that came out during the trial.

Google said in a blog post that it will ask the court to suspend the pending changes and will appeal the court's decision.

“This means all app developers, store builders, carriers and manufacturers have three years to build a vibrant and competitive Android ecosystem with critical mass enough for Google to stop,” Sweeney posted on social media Media.

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By Vanessa

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