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A U.S. judge on Monday mandated that Google open its Android operating system to competing app stores, marking another legal challenge for the tech giant.
This ruling stems from Google's loss in an antitrust case initiated by Epic Games, the developer of Fortnite, where a California jury determined that Google holds illegal monopoly power via its Android Play Store.
In December, the San Francisco jury took only a few hours to rule against Google, concluding that the company employed various unlawful tactics to sustain its monopoly over the Android app store.
The order, which Google intends to appeal, follows a similar defeat in August when another judge ruled that Google's leading search engine constitutes an illegal monopoly. Additionally, Google is contending with an antitrust lawsuit in Virginia concerning its dominance in online advertising.
According to the order from the Epic Games case, Google will be prohibited from engaging in several anticompetitive practices for the next three years. These restrictions include revenue-sharing arrangements with potential competitors and mandates requiring developers to launch apps solely on the Play Store.
The judge has also mandated the formation of a three-person Technical Committee to oversee the implementation of these changes and address any disputes that may arise.
This injunction poses a significant challenge to Google's supremacy in the Android app ecosystem and has the potential to transform the mobile app landscape in the years ahead.
Epic Games CEO Tim Sweeney urged companies to seize this moment "to create a vibrant and competitive Android ecosystem that Google can't suppress." He emphasized that these changes will apply only in the U.S., but affirmed that "the legal and regulatory battles will continue globally."
Google’s Response
Google announced it would appeal the injunction and seek to have it set aside while it continues its legal fight.
The judge stated that the order would take effect on November 1, with some provisions allowed until July 1 for implementation.
"We will continue to advocate for what is in the best interest of developers, device manufacturers, and the billions of Android users globally," stated Lee-Anne Mulholland, the company's vice president of regulatory affairs.
Devices using the Android operating system hold approximately a 70 percent share of the global smartphone market.
Smartphone manufacturers can access the Android app at no cost, provided that the Play app store is featured on the home screen and that other Google services are pre-installed.
The jury determined that Google acted unlawfully to ensure that the Google Play app store was the exclusive means for processing payments for third-party apps like Fortnite and other games.
A significant portion of app store revenue is generated from video games, and Epic Games has consistently aimed to facilitate payments for its mobile games, including Fortnite, outside of the Google or Apple app stores, which charge commissions of up to 30 percent.