A U.S. judge has ordered Google to overhaul its mobile app business to provide Android users with more options for downloading apps and making in-app purchases. This ruling follows a jury’s decision last year that favored Epic Games, the developer of Fortnite. U.S. District Judge James Donato, based in San Francisco, specified changes that Google needs to adopt to enhance competition in its lucrative app store, Google Play, including enabling downloads from rival sources.
Judge Donato’s order states that for the next three years, Google cannot block alternative in-app payment methods and must allow users to access third-party Android app platforms or stores. The ruling also prohibits Google from engaging in practices like paying device manufacturers to preinstall its app store or sharing revenue from the Play Store with other app distributors.
In the wake of this decision, Alphabet’s shares fell by 2.2%. Judge Donato mandated that Epic Games and Google collaboratively create a technical committee comprising three members to oversee the implementation of the injunction. Each party will appoint one member, with those two selecting a third.
Google has expressed its intention to appeal the ruling that led to this injunction and may ask the Ninth Circuit Court of Appeals in San Francisco for a stay on Judge Donato’s order while the appeal is underway. The injunction is set to take effect on November 1, giving Google time to adjust its current agreements and practices to meet the new stipulations.
Epic Games initiated its lawsuit in 2020, claiming that Google had monopolized the app distribution on Android devices and controlled payment processes for in-app transactions. In December 2023, Epic successfully demonstrated to a jury that Google unlawfully stifled competition through its app distribution and payment mechanisms, which prompted Judge Donato’s injunction. While Google urged the judge to dismiss Epic’s proposed changes, labeling them as costly, overly restrictive, and potentially harmful to consumer privacy and security, the judge largely dismissed these concerns during an August hearing.
In a notable statement to Google’s legal team, Judge Donato remarked, “You’re going to end up paying something to make the world right after having been found to be a monopolist.”
In a separate antitrust case in Washington, U.S. District Judge Amit Mehta ruled on August 5 in favor of the U.S. Justice Department, determining that Google had illegally dominated web search by spending billions to secure its position as the default search engine. Additionally, Google is set for a trial in September in a lawsuit from the Justice Department concerning its dominance in advertising technology. Google has denied all allegations in these ongoing cases.