US judge orders Google to open app store to competition

In a major legal ruling, a US judge ordered Google to significantly alter its app store practices to allow greater competition on its Android platform.

The decision, issued on October 7 by US District Judge James Donato in San Francisco, came after a lawsuit brought by Fortnite developer Epic Games, which accused Google of monopolizing the app distribution and payment markets on Android devices.

The injunction, effective for three years, compels Google to allow users to download apps from third-party sources and use alternative in-app payment methods.

The judge also prohibited Google from paying device manufacturers to pre-install its Play Store or sharing Play Store revenue with other app distributors.

The order, set to take effect on November 1, 2024, aims to dismantle what the court viewed as unfair restrictions that stifled competition.

Epic Games' lawsuit, filed in 2020, argued that Google’s policies unfairly restricted how consumers accessed apps and how developers processed in-app transactions.

In December 2023, a jury ruled in favor of Epic, leading to the injunction.

Judge Donato emphasized that Google’s monopolistic control over the Android app market warranted reform, despite the company's argument that such changes could harm privacy and security for users.

Google, however, announced plans to appeal the decision, warning that the reforms could lead to unintended consequences for consumers, developers, and device makers.

The company will seek a stay of the order as it prepares to appeal in the 9th US Circuit Court of Appeals.

"While these changes might satisfy Epic, they will cause unintended consequences that harm American consumers," Google said in a statement.

Epic Games CEO Tim Sweeney welcomed the ruling, calling it a victory for competition in the Android ecosystem.

He indicated that the Epic Games Store and other third-party app stores will debut on Google Play in 2025, signaling a potential shift in how Android users access apps.

Sweeney added that app developers, store creators, and others now have a three-year window to establish a thriving competitive ecosystem that Google cannot easily block.

This ruling is not the only legal pressure Google faces. In August 2024, US District Judge Amit Mehta ruled in a separate case that Google had illegally monopolized web search by paying billions to become the default search engine on devices.

The tech giant is also embroiled in an antitrust trial in Virginia, where the US Department of Justice has accused it of monopolizing the advertising technology market.

Beyond the U.S., Google is facing scrutiny in other regions, including New Zealand, where new legislative proposals have put the tech giant at odds with local lawmakers and news organizations.

The New Zealand government introduced the Fair Digital News Bargaining Bill, which would require tech companies like Google to compensate news organizations for linking to their content.

Google has opposed the bill, warning of severe consequences, including the possibility of removing news content from its platforms in the country.

In response to increased demands for transparency and competition, Google has been testing new features in some regions, including New Zealand.

Recently, the company introduced a verification system for businesses that allows users to identify authentic organizations more easily.

The feature, which displays a blue checkmark next to verified businesses in search results, aims to help consumers avoid counterfeit websites and fraudulent services.

Although the verification system is still in the experimental stage, it has been rolled out for major companies like Microsoft, Meta, and Amazon.

However, Google's conflict with the New Zealand government over the Fair Digital News Bargaining Bill adds another layer of tension.

Google has voiced concerns that the bill, which mandates payments to news publishers for content links, would disrupt the open web and reduce access to local news, especially for smaller outlets.

Google New Zealand's country director, Caroline Rainsford, warned that the bill could force the company to halt its agreements with local publishers and remove news from its search and news platforms.

This dispute echoes similar clashes between tech companies and regulators in Australia and Canada, where comparable legislation has been introduced.

As Google faces regulatory scrutiny and antitrust challenges around the world, these developments signal a global push to curb the dominance of major tech platforms and promote fairer competition across multiple sectors.

The US judge's ruling, along with ongoing battles in New Zealand and elsewhere, highlights the growing momentum behind efforts to reshape the tech landscape.

4o