Key Points
- Google must allow third-party app stores and independent billing systems for three years starting November 1.
- Epic will be able to offer its app store on Google’s Android platform by 2025.
- Google plans to appeal the decision, arguing that it competes fairly with Apple.
- Google faces additional antitrust lawsuits, including one related to its search engine and another focused on its advertising business.
U.S. District Judge James Donato has ordered Google to open its Play Store to third-party app stores. Starting November 1, 2024, Google is required to allow developers to introduce their app stores to the Android platform for the next three years and use their billing systems, effectively bypassing Google’s control over in-app payments.
This decision mandated that Google allow rival third-party app stores to operate within Google Play and provide them access to the full catalog of apps available on the platform, unless developers opt out individually.
This legal battle marks a significant win for Epic Games, which began in 2020 when the company sued Google after Fortnite was removed from the Play Store for attempting to bypass Google’s 30% commission on in-app purchases. In December 2023, a federal jury in San Francisco found that Google violated antitrust laws by imposing excessive fees and restrictive rules on developers.
With this new ruling, Google will be entitled to charge developers “a reasonable fee for these services,”which must be based on Google’s actual costs. These changes represent a significant shift in the Android app ecosystem and could transform how apps are distributed on Android devices.
Key Rulings in the Case:
- Opening the Google Play Store to Competition: Google must allow third-party app stores to distribute apps through its Play Store, breaking the exclusivity of Google’s app distribution.
- Flexible Billing: Google can no longer force developers to use Google Play Billing for app transactions.
- Freedom for Developers: Android developers can now inform users of alternative payment options and link to other app download sources outside the Play Store.
- Price Control: Developers can set their app prices independently of Google Play’s billing system.
Google’s Restrictions Under the New Ruling
- Sharing app revenue with any entity that distributes Android apps or plans to launch an app platform.
- Offering financial incentives to developers for exclusive or early launches on the Play Store.
- Offering developers money or perks not to launch their apps on rival stores
- Giving perks to device makers or carriers for pre-installing the Play Store or excluding rival app stores.
Judge Donato acknowledged that Google would be unhappy with his decision.
“Google’s modus operandi in this case has been to deluge the court in an ocean of comments, many of which were cursory and undeveloped,” he wrote in his ruling. He compared the volume of Google’s arguments to a “blunderbuss.”
The Story Behind Epic’s Lawsuit
After suing Google in August 2020, Epic Games filed a similar lawsuit against Apple on the same day. Both Google and Apple removed Fortnite from their respective app stores, sparking the #FreeFortnite campaign and a pair of lawsuits accusing each company of monopolistic behavior.
The Apple case is over, and Apple mostly won: the Supreme Court rejected Epic’s final appeal this January. The only thing Epic legally achieved there was an order dismantling Apple’s “anti-steering rules,” theoretically letting developers freely tell their customers how to bypass Apple’s payment systems.
However, Google’s case took a much longer and delivered a vastly different result.
Epic Games argued that Google’s extensive web of deals with app developers, phone manufacturers, and wireless carriers made it nearly impossible for rival app stores to gain a foothold.
Judge Donato’s decision mandates significant changes, including the ability for developers to offer alternative payment options and distribute apps outside Google Play. This opens the door for more competition and less reliance on Google’s services, which have long dominated the Android platform.
Yet Amazon, of all companies, convinced Judge Donato that Google’s rivals need a helping hand. “Even a corporate behemoth like Amazon could not compete with the Google Play Store due to network effects,” writes Donato, which made it difficult for the Amazon Appstore to attract users and apps. With access to Google Play’s app catalog under the new ruling, Judge Donato suggests rival stores now have a “fighting chance” to succeed.
Epic’s Mixed Victory – Not All Demands Were Met
While Epic won significant changes, not all of its demands were met. The company had asked for six years of market reform, but the court ruled for three years, believing this would allow rivals time to grow without unduly restricting Google’s ability to compete.
Epic had also requested more accessible sideloading options, such as a single-tap installation for apps outside the Play Store and a complete separation of Android APIs from Google Play.
However, these demands were not granted, as the court sought to balance competition with Google’s ability to remain a player in the market.
Epic Games CEO Tim Sweeney posted on X, “The Epic Games Store and other app stores are coming to the Google Play Store in 2025 in the USA — without Google’s scare screens and Google’s 30% app tax — thanks to victory in Epic v Google.”
Big news! The Epic Games Store and other app stores are coming to the Google Play Store in 2025 in the USA – without Google’s scare screens and Google’s 30% app tax – thanks to victory in Epic v Google.https://t.co/1g6uuw1CJB
— Tim Sweeney (@TimSweeneyEpic) October 7, 2024
Google Retains Control Over Security, But with Limits
Although the ruling forces Google to open the doors to competition, the company will still maintain some security oversight. Google can impose “reasonable measures” to ensure app store safety, but these must be “strictly necessary” and “narrowly tailored.” Google is also allowed to charge a fee to ensure the security of third-party app stores, but only at reasonable rates.
Epic has long argued that Google could use its policing power to undermine third-party stores by making it difficult for them to operate. This tension between security and competition will likely remain a contention as the court’s order is implemented.
In earlier hearings, Judge Donato clarified that Google’s control over the app marketplace would not go unchecked. “We’re going to tear the barriers down; it’s just the way it’s going to happen,” he stated in court, rejecting Google’s arguments that meeting Epic’s demands would be too expensive or time-consuming.
Google’s Final Reaction
Google strongly opposed the ruling and plans to appeal. It expressed displeasure with the ruling, stating that the mandated changes will lead to “a range of unintended consequences that will harm American consumers, developers, and device makers.”
It remains uncertain whether Google will have to immediately comply with the court’s ruling in Epic Games v. Google, despite the permanent injunction set to take effect on November 1, 2024. Google has already signaled its intention to appeal the decision, and the company is now pursuing an immediate stay of the court’s orders. In a blog post released following the verdict, Google indicated that it plans to request a pause on the changes Epic has requested while it continues to fight the case in higher courts.
And, Google has already vowed to appeal the decision and is seeking a stay to delay the implementation of the court’s order. Google argues that these reforms could lead to security risks, fragmentation of the Android ecosystem, and confusion among users.
The Road Ahead
The ruling in the Epic Games v. Google case marked a dramatic change in the market for Android apps. This is the first frontal challenge to Google’s monopoly on app distribution in years.
While it remains to be seen how long the changes will last—especially with Google’s appeal on the horizon—the ruling marks a crucial victory for developers and rival app stores looking to break free from Google’s control.
If the decision is sustained, it may change the future of the Android ecosystem by fostering a more competitive environment that benefits both developers and customers. But with ongoing legal battles and Google fighting to maintain its dominance, the final outcome is still far from certain.
Strategic Creative & Technical Writer
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