Google has been ordered to open its app store to competitors following a major lawsuit in the US.
A U.S. federal judge this week ordered Google to open the Google Play Store to competition as punishment for maintaining an illegal monopoly over how app distribution is managed on the Android operating system.
The final ruling in the case by U.S. District Judge James Donato requires Google to make its Play Store for Android apps available to consumers by distributing rival app stores. It would require several changes that tech giants have resisted, including provisions. Download it to your phone if you want.
The judge’s order also gives rival companies access to the millions of Android apps in the Play Store library, giving them a competitive option.
Liz Coll, UK consumer technology policy expert, said:
“This latest decision will go a long way toward loosening Google’s long-standing grip on the app store for Android developers, ultimately placing unnecessary burdens on Android phone users around the world.”
Mr Coll, who is suing Google for £920m over Google Play Store restrictions that caused consumers to be overcharged for apps and digital content, said: We look forward to the filing of this lawsuit.” This applies to around 20 million UK consumers who are overpaying for apps, subscriptions and in-app purchases due to Google’s app store settings. ”
Get our newsletter to stay up to date on this case as we prepare for trial in October 2025.
Google has until November to make changes
Judge Donato gave Google until November to make the changes outlined in the order. The company is trying to reduce the chance that potentially malicious software could sneak into rival Android app stores and infect millions of Samsung phones and other mobile devices running free Android software. It claimed it would take 12 to 16 months to design the necessary safeguards.
The court-ordered review comes as part of an effort to protect the fee system that has been a boon for one of the world’s most prosperous companies and helped boost the value of the app market. The purpose is to prevent the Parent company Alphabet Inc. worth $2 trillion (£1.53 trillion).
In a blog post, Google asked the court to suspend the pending changes and said it would appeal the court’s decision.
Google revenue sharing limits
The judge also ruled that for three years, until November 1, 2027, Google cannot share revenue from the Play Store with anyone who distributes Android apps or is considering launching an Android app distribution platform or store. handed down a judgment.
Additionally, we cannot pay or share revenue with developers to release their apps first or exclusively on the Google Play Store, and we cannot pre-install the Google Play Store on a specific location on an Android device. Therefore, it is not possible to enter into a contract with the manufacturer.
They also can’t require apps to use their own billing systems or tell customers they might be able to download the app cheaper elsewhere.
Google Play Store makes billions from fee discounts
The Play Store has earned billions of dollars a year for years, primarily through the 15% to 30% fees Google charges on digital transactions completed within Android apps.
This is similar to the pricing structure that Apple has rolled out in its iPhone app store. The fee structure is what prompted video game maker Epic Games to file an antitrust lawsuit in the U.S. four years ago to encourage competition that could lead to lower prices for games. Both app makers and consumers.
A federal judge largely sided with Apple in a September 2021 ruling that was upheld by an appeals court. But Epic Games won a U.S. lawsuit against Google, accusing it of stifling competition and abusing its dominance by charging unreasonable fees.
Therefore, another hearing was held this year to help Judge Donato decide what steps should be taken to restore fair competition.
Google claimed Epic Games was seeking radical changes that could cost as much as $600bn (£459bn). Epic argued that Google could level the playing field for as little as $1 million (£760,000). It’s unclear how much the judge-ordered changes will cost Google.
Apple is likely to feel the ripple effect
Epic lost its antitrust case against Apple, but another federal judge is considering whether Apple makes it easy enough to facilitate different ways for consumers to pay for digital transactions. The judge’s ruling could still have ripple effects on the iPhone app store.
Apple was ordered to allow in-app links to alternative payment systems as part of U.S. District Judge Yvonne Gonzalez Rogers’ ruling in the case, but Epic has been ordered to allow in-app links to alternative payment systems. They argued that the creation of the system undermined this provision.
In the UK, Dr Rachel Kent, a lecturer in digital economy and society, filed a £1.5 billion claim against Apple on behalf of British consumers and businesses.
She claimed that Apple abused its dominant position and violated competition law by charging these exorbitant prices. Get our newsletter to stay informed when Kent’s trial against Apple begins in January 2025.
Crackdown on Google in the US
The upcoming Play Store shake-up could just be the first unwanted blow to Google from antitrust law.
In the largest antitrust case brought by the U.S. Department of Justice in a quarter century, U.S. District Judge Amit Mehta declared in August that Google’s dominant search engine is an illegal monopoly.
The U.S. Department of Justice is considering asking a federal judge to force Google to sell part of its technology empire to fight its online search monopoly.
Google is appealing the ruling in the search engine case, hoping to avoid penalties that could hurt its business even more than the changes ordered in the Play Store.
The UK Competition Appeal Court is currently considering whether my £7.3bn claim against Google for abuse of search dominance should go to trial following a hearing last month.
Related claims
Google is accused of anti-competitive conduct that has shut out competition in its search engine in a £7 billion lawsuit affecting 65 million UK consumers.
Google faces a £920m consumer claim for Play Store overcharging. If you purchased the app on Android after October 1, 2015, sign up for updates.
Apple is facing allegations of being overcharged by £1.5bn on its App Store. If you purchased the app on your iPhone or iPad after October 1, 2015, sign up to stay informed.
