Google lost its lawsuit against Epic Games. The court declared the Google Play platform an illegal monopoly and ordered the company to open Android for installation of third-party application stores on users’ devices, as well as provide them with access to the Google Play catalogue.
As TheVerge reports, Judge James Donato has issued a final ruling in the Epic v. Google case, ruling that Google must open up its platform to ensure fair competition. For three years, the company will be required to provide third-party application stores with access to the full Google Play catalog and promote these stores through its platform on a general basis. It is noted that this decision could radically change the Android application market, unless, of course, Google manages to suspend or challenge the ruling on appeal.
The court also ordered Google to make changes to its billing policies starting November 1, 2024 and ending November 1, 2027. In particular, Google will no longer be able to require developers to use Google Play Billing to pay for applications hosted on Google Play. Developers will be able to inform users about other payment methods, post links to alternative stores and set prices for their applications without being tied to the Google payment system.
Google is also prohibited from entering into certain agreements with developers, device manufacturers and telecom operators. The company will not be able to share revenues with any participants in the app market, offer financial benefits for exclusive placement of applications on Google Play or for refusal to list in competing stores. It was also prohibited from providing incentives to manufacturers and telecom operators for pre-installing Google Play or refusing to pre-install third-party stores.
Epic Games previously said that Google had created a network of agreements with developers, manufacturers and operators, which virtually eliminated the possibility of competitors. Now, thanks to the court’s decision, third-party stores will have the opportunity to compete with Google Play on an equal footing. However, Google will retain certain security controls, which will allow the company to charge fees for compliance with these measures.
The judge granted Google an eight-month extension to develop a system that will ensure compliance with the court’s decision. And subsequent disputes between Epic and Google will be considered by a three-person technical committee chosen by both parties. It is also noted that the court did not satisfy all of Epic’s demands, for example, extending the validity period of the decision to six years and simplifying the process of installing applications through third-party sources.
As a reminder, Epic Games filed its lawsuit against Google on August 13, 2020, the same day it filed a similar lawsuit against Apple, setting up, as TheVerge writes, “a deliberate trap for both tech giants in an attempt to circumvent their 30% commission on purchases in app with an update to its mega-popular game Fortnite.” Both companies responded by banning Fortnite from their app stores, only to be hit with a coordinated #FreeFortnite campaign and lawsuits accusing each of them of creating illegal monopolies.
Google has already announced its intention to appeal the court’s decision, arguing that the changes will lead to “unintended consequences” that could negatively impact consumers, developers and device manufacturers.
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