Alphabet Inc. must lift restrictions that prevent developers from launching rival marketplaces to compete with the company’s Google Play Store, a judge has ruled, undermining the search giant’s dominance in the lucrative Android app market. I decided to overturn it.
A federal judge in San Francisco on Monday handed Epic a major victory in a long-running antitrust lawsuit against the tech giant’s app store, which generated $14.66 billion in revenue in 2020. The video game Fortnite convinced a jury that Google abused its power in the Android app market through its Google Play Store policies.
Alphabet shares fell as much as 2.5% to $162.96 in New York. It was up 20% this year by the end of last week.
“The Epic ruling missed the obvious point: Apple and Android are clearly competitors,” Google said in a blog post. “We will appeal and ask the court to suspend implementation of the remedies in order to maintain a consistent and secure experience for users and developers as the legal process progresses.”
The ruling was the latest antitrust blow to Google, which lost a lawsuit in August over the U.S. Department of Justice’s claims that the company illegally monopolized the online search and advertising markets.
The department detailed its proposals to mitigate harms arising from that misconduct, even as the agency is still battling Google in a separate lawsuit over Google’s alleged control over technology used to buy and sell online ads. is expected to be announced on Tuesday. Closing arguments in the dispute will be held in November, with a decision expected by the end of the year.
App store controls
In the lawsuit, which began in 2020, Epic argued that Google Play’s rules and fees stifle competition and block app marketplaces launched by developers. The judge’s decision is likely to accelerate the weakening of app store regulations by tech giants Google and Apple, which have come under fire from regulators and lawmakers around the world.
U.S. District Judge James Donato has ruled that Google cannot pay developers for exclusive use of its app store or tell customers how to download their apps directly. An injunction was issued banning it for a year and took effect on November 1st. Additionally, Google cannot force developers to use billing features during that period.
The company also needs to give rival app stores access to its catalog for the next three years to help develop them.
Mr. Donato had threatened to get tough on Google after a jury found in December that the company had engaged in anticompetitive conduct that harmed Epic.
“The question at hand is not whether Google violated antitrust laws by failing to support its rivals, but rather what steps Google should take to restore fair competition in the face of the barriers the jury identified.” The question is whether it is necessary.”
“Requiring Google to allow other app stores to be distributed through the Play Store for a period of time is a small step toward redressing the consequences of illegally blocking competing stores from accessing users and developers.” “It’s a step,” Donato said.
“Reasonable measures”
In its defense, Google argued that the partnership would make Android-powered phones more competitive with Apple’s iPhone.
The judge said Google could take “reasonable steps” to ensure the security of its platform and ordered the parties to recommend three people to a committee to consider the technical aspects of these requirements. Ta. Developers who feel Google’s security measures are too strict can challenge them, with the tech giant responsible for proving they are necessary.
Donato limited the injunction to three years because “this provision is intended to level the playing field for the entry and growth of rivals without placing an undue burden on Google.” said.
Google had told the judge it would take 12 to 16 months to add third-party apps to the Play Store, but Donato set the deadline at eight months.
Representatives for Epic did not respond to requests for comment.
Epic vs Apple battle
Epic successfully brought a similar antitrust case against Apple’s app store. In 2021, a judge in Oakland, California, concluded that the App Store did not violate federal monopoly law. But a judge sided with Epic on an unfair competition claim under California law and directed the iPhone maker to allow developers to direct customers to its website for online transactions.
The Fortnite maker claims in its lawsuit against Google that the tech company has dominated the Android app distribution market for more than a decade by making backroom deals with rivals and using its own resources to stifle competition. He claimed that he had a monopoly.
During the trial, Epic presented evidence that Google partnered with phone manufacturers such as Samsung Electronics to ensure that Google Play was pre-installed on mobile devices. Under Donato’s ruling, Google will require payment, revenue sharing, or access to Google services as a condition of its agreements with device manufacturers and wireless carriers in exchange for prominently featuring the Google Play Store on devices. You will be prohibited from using this access.
(With assistance from Rachel Graf, Julia Ann Love, and Davey Alba)
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