Google ordered to open Android to rival app stores in major antitrust ruling

U.S. judge has ordered Google to allow rival app stores on its Android operating system, marking a major legal setback for the tech giant. The decision, handed down on Monday, follows Google’s loss in an antitrust case brought by Epic Games, the maker of the popular video game Fortnite. A California jury had previously ruled that Google maintains an illegal monopoly through its Android Play Store.

The December jury decision came swiftly, taking just a few hours to conclude that Google had used various illegal strategies to preserve its app store monopoly on Android devices. This latest ruling adds to Google’s ongoing legal battles, including a similar setback in August, when another court found its search engine to be an illegal monopoly.

Google is currently appealing the new order. The tech company is also fighting an antitrust lawsuit in Virginia over its dominance in online advertising.

Changes to the Android ecosystem

The injunction, which will be in effect for the next three years, prohibits Google from engaging in several practices the jury found to be anti-competitive. These include revenue-sharing deals with potential competitors and requirements that app developers release their products exclusively on the Play Store. A three-person Technical Committee has been established to oversee the enforcement of these changes and to address any disputes that may arise.

This ruling represents a major challenge to Google’s dominance in the Android ecosystem and could reshape the mobile app landscape. It also follows Epic Games’ broader legal efforts to open up app ecosystems, as the company has long been pushing to avoid commissions as high as 30% on mobile games like Fortnite, which are sold through platforms like Google Play and Apple’s App Store.

Epic Games CEO Tim Sweeney called the ruling a critical moment, encouraging companies to take advantage of the opportunity to build a “vibrant and competitive Android ecosystem.” He noted, however, that these changes will apply only in the U.S., while legal and regulatory battles are expected to continue in other parts of the world.

Google’s response

Google has already filed an appeal to the ruling and is asking for the injunction to be set aside while the legal process plays out. According to the company, the order is set to take effect on November 1, with certain provisions extending until July 1.

“We will keep advocating for what is best for developers, device manufacturers, and the billions of Android users around the world,” said Lee-Anne Mulholland, Google’s vice president of regulatory affairs.

Google also defended its app store practices, arguing that agreements with smartphone makers helped Android devices better compete with Apple’s iPhone. The company noted that Android phones make up about 70% of the global smartphone market.

However, the trial revealed that Google generates tens of billions of dollars in revenue from the Play Store, much of it through video game sales. The jury found that the company had unfairly ensured the Play Store was the primary avenue for third-party apps to process payments, a central point in Epic Games’ case.

Broader legal battle

Epic Games’ legal challenge against Google is part of a broader effort to reform app store policies. While Epic suffered a similar defeat in a separate lawsuit against Apple, the tech industry continues to debate the fairness of app store commissions and other practices.

Google and Apple have both defended their commission structures, saying they are industry standard and cover the costs of providing secure transaction systems, reach, and protection against malware.

Despite these defenses, the ruling against Google is seen as a pivotal moment that could encourage further regulatory scrutiny and possibly open the door to more competition in the mobile app marketplace.