Character actors from Epic Games’ video game “Fortnite” dance at the E3 Electronic Entertainment Expo in Los Angeles on June 12, 2019.
Kyle Grillot | Bloomberg | Getty Images
A U.S. judge issued a mandatory injunction on Monday. google To provide an alternative to Google Play Store for downloading apps on Android smartphones.
Google would also be restricted from paying fees or sharing revenue with companies in exchange for those companies choosing not to compete with Google’s app store. Alphabet stock fell on the news, dropping more than 2% on Monday.
California Judge James Donato’s ruling is the most significant outcome of Epic Games’ antitrust lawsuit against Google that began in 2020. The Fortnite maker accused Google of anti-competitive practices, including paying hardware companies and Android phone makers to refuse to develop it. Competing app stores.
This decision could lead to developers capturing a larger share of the market, as Google and Apple’s app stores typically account for 15% to 30% of total revenue for high-revenue apps. . Google Play’s new restrictions could allow developers to circumvent Google’s rules and fees and secure more revenue.
According to Sensor Tower, consumers spent $124 billion on apps in 2023.
According to the application, for three years starting in November, Google will not be able to:
- Pay companies to launch your app exclusively or first on Google Play
- Pay companies to not compete with Google Play
- Pay companies to pre-install Google Play on new devices
- Require app makers to use Google Play Billing or prohibit app makers from telling users about cheaper online products on their websites (Google Play collects 15% to 30% of in-app purchases from large app makers) (receive it as a fee)
- Google must also allow competing Android app stores to access Google Play’s app catalog
- Google needs to accommodate third-party Android app stores in its own Google Play app store.
Epic and Google also plan to establish a three-person committee to review technical issues related to Google’s compliance, according to the filing.
Epic Games won against Google late last year, and Monday’s filing details the changes Google must make. Epic Games almost lost a very similar lawsuit against Apple and its App Store management. Google’s case was decided by a jury. Apple’s case was decided by a judge.
Epic Games has published titles such as Fortnite that are monetized through in-app purchases of character costumes and other so-called “skins,” and in 2020 it has launched a mobile app that offers cheaper purchases of Fortnite. It challenged Google and Apple’s contractual control over app distribution. In-game currency violates app store rules, and a lawsuit has been initiated.
Epic Games nearly lost a similar lawsuit against Apple and its App Store control. Google’s case was decided by a jury. Apple’s case was decided by a judge.
During Google’s trial, Epic Games is questioning whether Google has locked up the app store market through deals with phone manufacturers, as well as Android’s sideloading feature that allows Android users to install apps from the web with security warnings. focused on whether it scared users away from using it.
Epic Games CEO Tim Sweeney has previously said that Google’s corporate culture contributed to Epic’s victory, but that’s because Google officials cited emails and communications that came up during the trial regarding its business practices. This is because he often wrote down and documented things.
In a blog post, Google asked the court to suspend the pending changes and said it would appeal the court’s decision.
A representative for Epic Games did not immediately respond to CNBC’s request for comment.
