In a significant ruling, a federal judge ordered Google to dismantle its restrictive controls over the Android app store, enabling more competition in the market.
Judge James Donato of the US District Court mandated Google to make changes by November, which would allow third-party app stores on Android, providing customers with more choices.
Google Ordered to Change Play Store Practices
The decision stems from allegations that Google held an unfair monopoly over the Android app market, which has helped the tech giant strengthen its internet dominance.
The ruling aims to reduce Google's power by allowing competitors to reach millions of Android users, fostering a fairer market.
The order requires Google, based in Mountain View, California, to change the way its Play Store operates. Specifically, it will have to allow third-party app stores, giving customers the option to download apps from other platforms.
Google will also be restricted from imposing exclusive deals or requirements on app developers. For instance, developers will no longer need to use Google's payment system, which charges commissions between 15% to 30%, a structure that has brought Google billions in revenue, according to AP News.
Judge Donato's ruling goes further, stating that, for three years starting on November 1, 2027, Google must stop paying revenue to companies for exclusive distribution on Android.
Google must also refrain from striking deals with phone manufacturers to pre-install the Play Store prominently on Android devices. Furthermore, the company is banned from demanding that its billing system be used or telling consumers they can find apps from other sources, often at a better price.
Google Faces Tight Deadlines
Although Google argued it would need 12 to 16 months to make these changes, the court set a deadline of November. The company says it is committed to protecting users by implementing security measures to prevent malicious software on Android devices.
Google has been given permission to take "reasonable measures" to keep its platform safe. Developers who feel these measures are too strict can challenge Google, requiring the company to justify the need for such protections.
The changes are expected to impact Google financially, although the exact costs are unclear. Google has argued that redesigning the app store and other services would be costly, potentially reaching $600 billion.
As Franchise Herald previously reported, Epic Games, the video game developer that challenged Google's practices, estimates that making the app market fairer would only cost around $1 million. The case against Google comes after a similar legal battle between Epic Games and Apple over the iPhone app store.
In 2021, a California judge largely sided with Apple, ruling that the App Store didn't violate federal monopoly laws, though Epic won on one California law claim. Like Apple, Google has also been accused of maintaining a monopoly on the Android app distribution market, making deals with companies like Samsung to ensure the Play Store is pre-installed on their devices.
Judge Donato's ruling forbids Google from offering payments or sharing revenue in exchange for preferred placement of the Play Store on phones. Epic claims these practices have allowed Google to maintain a monopoly on Android app distribution for over a decade.
Evidence presented during the trial showed Google's partnerships with companies like Samsung, ensuring the Play Store's pre-installation on millions of mobile devices.
Despite the ruling, Bloomberg said Google has indicated plans to appeal, claiming that the changes could create "unintended consequences."
According to Google's vice president of regulatory affairs, Lee-Anne Mulholland, the ruling could reduce user privacy and security and complicate app promotion efforts for developers. Google also worries the changes could lead to unexpected consequences that would harm consumers and developers.
