Google Must Make Big Changes to Its App Store

On October 7, 2024, U.S. District Judge James Donato ordered Google to restructure its mobile app business to allow greater competition in its Google Play store. The ruling requires Google to open its Play store to third-party app stores and prohibits Google from requiring that in-app purchases go through its own payment system.

This ruling follows Epic Games’ successful antitrust jury verdict decision against Google. In December of 2023, Epic Games, maker of the “Fortnite” games, won its antitrust lawsuit against Google. Epic argued that Google’s Play Store was restricting competition and charging exorbitant fees to app developers. The case highlighted big tech’s dominance of the digital marketplace.

Google Cannot Pay to Preinstall Google Play on Devices

The ruling further states that Google cannot pay device makers to preinstall the Google Play store on devices. Previously, Google was sharing revenues with Android device makers, like Samsung and LG, to preinstall the Play Store on their devices.

Judge Donato’s ruling also prohibited Google from paying device makers not to preinstall other app stores on their devices. Similarly, Google may not pay app developers not to make their apps available on third-party app stores.

Google Plans to Appeal the Antitrust Jury Verdict

Google is planning to appeal last year’s decision and halt U.S. Judge Donato’s injunction ruling. It plans to take its appeal to the 9th U.S. Circuit Court of Appeals in San Francisco. According to Google, these changes to their Play Store and policies will have “unintended consequences that will harm American consumers, developers, and device makers.”

Google argues that these changes could cause increased security risks to consumers, challenges in distribution and payment options for developers, and a drop in quality control.

Alternatively, Epic Games and other app stores view this as a great win and an opportunity to allow an open market for the developers and the consumers. They see this leading to increased choice and a fairer digital marketplace as more third-party app stores increase options and competition.

App developers, app stores, and other stakeholders will have a chance to build a diverse marketplace, they argue. If successful, Google will be unable to exert its dominance and control over the app distribution landscape. In the meantime, Epic Games Store plans to be available on Google Play by 2025.

Google Under Fire for Antitrust, Privacy Violations

This recent injunction involving Google Play is separate from another case brought by states attorney general against Google for similar monopolistic practices involving its Google Play store. Google and the states told Judge Donato that its $700 million Google Play settlement was fair.

In addition, Google lost an antitrust lawsuit involving its search engine. Meanwhile, the tech giant is under scrutiny for privacy violations involving Incognito mode in its Google Chrome browser. A class action case involving the Incognito privacy violations did not award damages to the class but allowed users to retain their right to file an individual lawsuit against Google.

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If you feel that Google may have infringed on your privacy while using Incognito Mode, you can take our online quiz to see if you qualify to file a lawsuit.

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