Google orders to open Android app store in Epic Games test
Character actors from the Epic Games Fortnite video game dance during the E3 Electronic Entertainment Expo in Los Angeles on June 12, 2019.
Kyle Grillot | Bloomberg | Getty Images
A US judge issued a permanent restraining order on Monday that would force Google to provide alternatives to the Google Play store for downloading apps on Android phones.
Google would also be limited in paying fees or sharing revenue with companies in exchange for them choosing not to compete with Google’s app store. Alphabet shares fell on the news and fell more than 2% on Monday.
The ruling by Judge James Donato in California was the most important result of Epic Games’ antitrust lawsuit against Googlestarting in 2020. Fortnite maker accuses Google of anticompetitive practices, including paying hardware companies and Android phone makers not to develop competing app stores .
The decision could help developers gain a larger share of the market, as both Google and Apple’s app stores typically account for 15% to 30% of total revenue for high-grossing apps. New restrictions on Google Play could allow developers to keep more revenue by bypassing Google’s rules or fees.
Consumers will spend $124 billion on apps by 2023, according to Sensor Tower.
According to the filing, starting in November, for three years, Google will be unable to:
- Pay companies to release apps exclusively or for the first time 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 notifying users about cheaper online goods on their sites (Google Play charges 15% to 30% of purchases in-app products from major app makers)
- Google would also have to allow competing Android app stores access to Google Play’s app catalog
- Google will have to include third-party Android app stores in its Google Play app store.
According to the filing, Epic and Google will also form a three-person committee to review technical issues related to Google’s compliance.
Epic Games prevailed over Google late last year, and Monday’s filing details the changes Google must make. Epic game Almost lost in a very similar outfit against Apple and its control over the App Store. Google’s trial was decided by jury. Apple’s trial is decided by the judge.
Epic Games publishes titles like “Fortnite,” makes money through in-app purchases of character costumes and other so-called “skins,” and challenges Google and Apple’s contractual control over mobile app distribution in 2020 that offered Fortnite purchases that cost less than in-game currency, violated app store rules and launched lawsuits.
Epic game Almost lost in a similar outfit against Apple and its control over the App Store. Google’s trial was decided by jury. Apple’s trial is decided by the judge.
During Google’s trial, Epic Games focused on whether Google locked out the app store market through agreements with handset manufacturers and whether that scared away users from uses Android’s sideloading functionality, allowing Android users to install apps from the web, through security warnings or not.
Epic Games CEO Tim Sweeney previously said Google’s corporate culture contributed to Epic’s win, because Google officials often write down or document business activities in emails or Contact information is given during the trial.
Google said in a blog post that they will ask the court to halt the pending changes and will appeal the court’s decision.
Representatives for Epic Games did not immediately respond to CNBC’s request for comment.
