In a significant ruling, a federal court has issued a permanent injunction that requires Google to make substantial changes to its Android operating system and Google Play Store. The court specifically mandates that the tech giant must allow greater access for third-party app stores. This ruling comes after a jury unanimously found Google guilty of violating antitrust laws in its dealings with Epic Games, Inc.
The ruling, issued by U.S. District Judge James Donato on October 7th, will take effect on November 1st and remain active within the United States for three years. The injunction stems from the case Epic Games, Inc. v. Google LLC et al., where the jury determined that Google engaged in monopolization, unlawful restraint of trade, and ”tying” practices under various statutes.
In this context, “tying” refers to Google’s practice of requiring app developers to use its own in-app payment system as a condition for distributing their apps on the Google Play Store. The court concluded that this practice restricted competition in both the Android app distribution and in-app billing markets.
A central aspect of the court’s order is the requirement for Google to allow third-party app stores full access to the catalog of apps available on the Google Play Store and permit these stores to be distributed through it. The court stated that this injunction aims to provide rival stores with a fair opportunity to establish themselves.
Notably, Judge Donato had previously indicated during an August hearing that while the injunction would not micromanage Google’s operations, it would establish broad guidelines aimed at fostering competition.
Key provisions of the injunction include prohibiting revenue sharing between Google and entities involved in distributing Android apps or considering launching an app distribution platform. Additionally, it forbids agreements enforcing Play Store exclusivity as conditions for accessing or paying for Google products. Furthermore, developers must be allowed to communicate with users about alternative payment methods or pricing outside of the Play Store.
Google has expressed opposition to this ruling and intends to appeal it. In response to the decision, Lee-Anne Mulholland (Google’s Vice President of Regulatory Affairs) argued that implementing these changes threatens user privacy and security while undermining Android’s ability to compete with Apple’s iOS.
Google contends that unlike Apple’s strict prohibition on third-party app stores, Android has always provided a level of openness; thus compromising security measures could harm user experience and differentiate them from competitors like Apple.
Epic Games accused Google of using its dominant market position unfairly by imposing restrictions on app developers regarding in-app payment systems and distributing apps outside of their store.
As legal proceedings continue through appeals processes,
Google remains committed ”to advocating what is best for developers,
device manufacturers,
and billions
of Android users worldwide.”