U.S. judge orders Google to open the Play Store to competitors

A U.S. judge has ordered Google to overhaul its Android app store policies to allow for greater competition. The ruling, handed down by U.S. District Judge James Donato on October 7, 2024, marks a major victory for “Fortnite” creator Epic Games, which sued Google over monopolistic practices back in 2020.

The court’s injunction mandates sweeping changes, including a three-year prohibition on Google preventing the use of third-party in-app payment methods. Additionally, Android users must now be permitted to download apps and app stores from competing sources, rather than being restricted to Google Play.

Judge Donato’s order stipulates that for the next three years, Google cannot force developers to exclusively use its payment system for in-app purchases, a key feature of its revenue model. Furthermore, the tech giant is barred from paying device manufacturers to preinstall the Play Store, a practice that has helped cement its control over the Android ecosystem. Google must also cease sharing Play Store revenues with other app distributors, another tactic that critics claim stifles competition.

This ruling came after a 2023 jury found Google guilty of unfairly monopolizing the app distribution and payment process on Android devices. Epic Games, which initiated the lawsuit, successfully argued that Google’s policies harmed both app developers and consumers by limiting their options and driving up costs.

In response to the court’s decision, Google announced its plans to appeal the ruling to the 9th U.S. Circuit Court of Appeals, stating that the injunction could lead to unintended consequences that would negatively impact consumers, developers, and device manufacturers. The company also said it would seek to pause the implementation of Judge Donato’s order while the appeal is underway.

For Epic Games, this decision represents a hard-fought victory in its ongoing battle to break Google’s and Apple’s duopoly over the app ecosystem. Tim Sweeney, CEO of Epic Games, hailed the ruling as “big news” and revealed that Epic’s own store, along with other app stores, would be available on Google Play by 2025. Sweeney expressed optimism that developers now have the opportunity to foster a more competitive Android app marketplace, predicting that the ecosystem would gain enough momentum that Google would be unable to block it in the future.

Under the terms of the injunction, both Google and Epic are required to establish a three-person technical committee to monitor the changes and ensure compliance. Each company will select one representative, and together they will choose a third neutral party to serve on the committee. The judge’s order is scheduled to take effect on November 1, 2024, giving Google time to adjust its current agreements and practices accordingly.