Google has announced plans to appeal a federal court decision that orders significant changes to its Android operating system and Google Play Store, arguing that the ruling undermines Android’s competitiveness against Apple’s iOS, which blocks third-party app stores.
The court ruling, issued by U.S. District Judge James Donato on October 7, stems from a lawsuit filed by Epic Games. A jury found that Google violated antitrust laws in its interactions with Epic Games, resulting in a permanent injunction that will take effect on November 1 for a three-year period in the U.S.
The case, Epic Games, Inc. v. Google LLC et al., concluded with a verdict that Google engaged in monopolization and unlawful restraint of trade under the Sherman Act and the California Cartwright Act. The company was also found guilty of “tying,” which involved requiring app developers to use Google’s own in-app payment system, Google Play Billing, as a condition for app distribution.
This practice, the court ruled, stifled competition in the app distribution and billing markets for Android.
The injunction mandates that Google must allow third-party app stores access to the full app catalog of the Google Play Store and also allow these stores to be available through the Play Store itself. The court emphasized that this order is designed to foster competition by giving rival app stores a fair chance to establish themselves in the market.
Key provisions of the ruling prevent Google from sharing Play Store revenue with other entities distributing Android apps, requiring Play Store exclusivity for payments or access to Google products, forcing developers to use Google Play Billing, and restricting developers from informing users about alternative payment methods.
Google expressed strong opposition to the ruling, with Lee-Anne Mulholland, Vice President of Regulatory Affairs, stating that the decision threatens user privacy and security, as well as Android’s ability to compete with Apple’s iOS. She also argued that Android has always provided more openness compared to iOS.
Epic Games accused Google of abusing its market dominance by imposing unfair restrictions, especially on in-app payments and the distribution of apps outside of the Play Store.
As the legal battle continues, Google reaffirmed its commitment to appealing the decision and to advocating for developers, device manufacturers, and Android users worldwide.