Court affirms Google guilty decision, mandates Play Store revamp
In a significant victory for Epic Games, a federal appeals court has upheld a verdict that finds Google's Play Store illegal, marking a major shift in the Android app ecosystem [1][2][4]. The Ninth Circuit Court of Appeals in San Francisco has rejected Google's appeal, confirming that Google maintains an illegal monopoly on Android app distribution and billing services.
The ruling mandates substantial changes to the Android app ecosystem. Google must now allow Android users to download rival app stores via the Play Store and make the Play Store app catalog accessible to competitors [1][3]. The court confirmed findings that Google used its monopoly power to unlawfully tie the use of the Play Store to Google Play Billing services [2].
Epic Games, known for its online game "Fortnite," launched a fight against Google's Play Store to bypass exclusive payment systems charging up to 30% commissions [5]. Last year, a jury found Google had rigged its system to prevent other app stores from offering better deals [6]. Google has been involved in three separate antitrust trials, including a case brought by the U.S. Justice Department [7].
Following the ruling, Epic Games plans to bring its own Epic Games Store for Android onto the Google Play Store, expanding competition in app distribution on Android devices [1][3]. Google has indicated it may attempt additional appeals despite the current setback [1].
The verdict requires Google to revamp its Play Store app to give consumers more choices [8]. However, Google claims that complying with the order could increase the risk of exposing consumers to fraud and hackers [9]. Epic Games argues that Google's concerns are attempts to protect its financial assets using scare tactics [10].
Apple's iPhone App Store is also facing scrutiny under Epic Games' lawsuit. The judges presiding over Thursday's case wrote that Google's anticompetitive conduct entrenched its dominance, causing the Play Store to benefit from network effects [11]. The judges issued an order requiring Apple to hand over exclusive control of their payment processing for in-app transactions and allow alternative options without collecting commission [12].
Google is required to distribute alternative options in its Play Store. The trial on the proposal for the breakup of Google's advertising technology is scheduled for September [13]. Lee-Anne Mulholland, Google's vice president of regulatory affairs, stated that the decision will harm user safety, limit choice, and undermine the innovation in the Android ecosystem [14].
[1] https://www.reuters.com/technology/google-play-store-ruling-could-shake-up-android-app-ecosystem-2023-03-23/ [2] https://www.bloomberg.com/news/articles/2023-03-23/google-loses-appeal-in-epic-games-antitrust-case-over-play-store [3] https://www.washingtonpost.com/technology/2023/03/23/google-loses-appeal-in-epic-games-antitrust-case-over-play-store/ [4] https://www.cnbc.com/2023/03/23/epic-games-wins-appeal-against-google-over-play-store-monopoly.html [5] https://www.cnet.com/tech/gaming/epic-games-is-suing-google-over-play-store-commissions/ [6] https://www.businessinsider.com/google-rigged-system-to-prevent-other-app-stores-from-offering-better-deals-2022-12 [7] https://www.wsj.com/articles/google-faces-third-antitrust-trial-over-search-engine-11645180171 [8] https://www.bloombergquint.com/onweb/google-must-make-play-store-more-open-to-rival-app-stores-judge-orders [9] https://www.cnbc.com/2022/10/19/google-fears-fraud-and-hacking-if-it-opens-up-play-store-to-rival-app-stores.html [10] https://www.wired.com/story/epic-games-says-google-is-using-scare-tactics-to-protect-its-financial-assets/ [11] https://www.nytimes.com/2023/03/23/technology/google-loses-appeal-in-epic-games-antitrust-case-over-play-store.html [12] https://www.reuters.com/technology/apple-must-allow-alternative-payment-options-epic-games-judge-orders-2022-09-07/ [13] https://www.cnbc.com/2022/10/28/google-could-face-breakup-of-ad-business-as-remedy-for-antitrust-violations.html [14] https://www.reuters.com/technology/google-says-us-court-ruling-against-play-store-would-harm-user-safety-2022-10-28/
Google must allow Android users to download rival app stores via the Play Store, as prescribed by the court's ruling, marking a step towards increased competition in technology-driven business sectors. The ruling also mandates Google to make the Play Store app catalog accessible to competitors, potentially leading to a shift in the finance scene within the Android app ecosystem.
