Google needs to open its Android app store to competition from smaller rivals like Fortnite maker Epic Games, a federal judge said Monday, potentially upending the company's dominance in the app market. said in a bombshell verdict.
The sweeping remedies outlined by U.S. District Judge James Donato in San Francisco federal court come months after North Carolina-based Epic Games won a surprise verdict against Google. Last December, a jury found that Google operated an illegal monopoly through the Play Store and its closely related Android in-app billing system.
“As soon as you're discovered to be a monopolist, you're going to pay some kind of price to make the world a better place,” Donato told Google's lawyers in court.
According to Donato's order, Google will spend the next three years preventing app developers from using their own in-app payment systems and forcing users to download apps from sources other than the lucrative Play Store for Android apps. It is prohibited to induce people to do so.
In addition, Google will be prohibited from using and distributing the Play Store exclusively to certain app developers, and will also be prohibited from sharing revenue from the Play Store with other app store operators.
Shares of Google's parent company Alphabet fell more than 2% in Monday trading.
Google said it would ask the court to suspend the change of judge pending the outcome of an ongoing appeal of the jury's verdict.
“Ultimately, these changes will likely satisfy Epic, but will have a variety of unintended consequences that will harm U.S. consumers, developers, and device manufacturers,” Google said in a blog post. said.
Epic Games did not immediately respond to a request for comment on the judge's decision.
Google will also be required to provide rival developers with access to its back catalog of apps. We cannot offer deals to smart device manufacturers or carriers to pre-install Play Store.
The preliminary injunction will go into effect on November 1st and is expected to remain in place until the same date in 2027.
Donato said Google will be allowed to take “reasonable steps” to ensure security. Google had argued that any bid to force the app store open would put users' privacy and devices at risk.
The judge ordered the creation of a three-person commission to monitor compliance with the order, with Epic and Google each appointing one member and those two selecting a third member. Ta.
Epic Games and other critics have long argued that Google dominates the app market and has traditionally collected up to 30% fees on digital transactions made within the Play Store.
During the trial, Epic's legal team focused on Google's practice of making payments and entering into contracts with developers to stifle competition from the Play Store. Lawyers called the practice, known internally as “Project Hug,” a “bribery and obstruction” scheme.
In one such case, Google offered $360 million in incentives to “Call of Duty” maker Activision Blizzard so it could launch its games on the Play Store.
The judge's ruling is just the latest sign of an escalating regulatory crackdown on Google.
In August, U.S. District Judge Amit Mehta ruled that Google illegally monopolized the online search market. The plan is to decide on the appropriate punishment by next summer.
Separately, Google is facing the Justice Department in a separate federal antitrust case targeting its alleged monopoly over digital advertising technology.
In either case, the federal government would likely pursue a forced breakup of the Google empire.
with post wires
