Google has been ordered to significantly alter its Android app store policies in a federal ruling that could reshape the mobile software landscape. In a decision stemming from the legal battle between Epic Games and Google, the tech giant must allow third-party app stores on Android, opening the door to more competition for a period of three years. The ruling follows a jury’s finding that Google had violated antitrust laws, giving developers more freedom and reducing Google’s control over app distribution.
A New Era for Android App Stores
According to court documents, for the next three years, Google will be required to let competing app stores operate within its Play Store ecosystem. Alternative platforms will be granted access to the same apps available on Google Play, unless developers choose to opt out. The decision, which takes effect on November 1, 2024, could mark a turning point for Android users and developers by reducing the dominance of Google’s app store.
Google, however, will still retain some control over app safety. The court has allowed the company to charge third-party app stores a fee to cover security checks and app reviews, provided these measures are similar to those used for apps on Google Play.
Restrictions on Payment Systems and Developer Perks
Another major shift from this ruling involves payment methods. Google can no longer enforce the use of its Play Billing system for apps distributed on the Play Store. Developers will be free to offer alternative payment methods and inform users of ways to pay outside Google’s ecosystem.
This decision cuts into Google’s 30% revenue share on in-app purchases, long a point of contention for developers. Additionally, the court has banned Google from incentivizing developers to prioritize launching their apps on Google Play over rival stores.
Developers will now have more flexibility to distribute their apps across multiple platforms without being locked into exclusive agreements with Google. Device makers and carriers are also restricted from making exclusive deals with Google to preinstall the Play Store, another move aimed at fostering more competition in the Android ecosystem.
Amazon and the Struggle for App Store Competition
One of the key points in the case was Amazon’s challenge to Google’s control of the Android app market. According to the court, even Amazon—one of the largest tech companies in the world—was unable to compete with the Google Play Store due to Google’s business practices. Amazon’s Appstore has struggled to attract both developers and users, a problem attributed to the network effects created by Google’s dominance in the market.
With the new ruling, alternative app stores like Amazon’s will have access to the Play Store’s catalog, providing them with a better opportunity to compete. The court has effectively given these platforms a “fighting chance” to establish themselves as viable alternatives to Google Play, a goal that has so far been difficult to achieve.
Google’s Appeal and Ongoing Legal Battles
Although the court’s decision marks a major win for Epic Games, the legal fight isn’t over. Google has already announced plans to appeal the ruling, arguing that the court’s requirements could have negative consequences for consumers, developers, and manufacturers. Google also intends to request a delay in implementing the changes while the appeal is pending, potentially stalling the enforcement of the ruling for several years.
Google will focus its appeal on three key areas. Apple and Google compete directly for consumers and app developers in the smartphone market. The decision to treat Android as a separate market is flawed, as evidenced by the side-by-side competition of devices in stores. Developers prioritize investing in both Android and iOS platforms, as they have limited resources. Android’s openness allows for multiple app distribution channels, unlike the restricted options on iPhones.
In the meantime, Epic has filed a second lawsuit against both Google and Samsung, accusing the companies of trying to sidestep the court’s ruling by making it harder for third-party app stores to operate. This new legal battle is directly tied to the previous case and will also be overseen by Judge Donato.
Epic vs Apple
Epic has already fought similar legal battles with Apple, although was not as successful. Apple was locked in a legal confrontation with Epic Games and there was a later refusal by the U.S. Supreme Court to hear Apple’s appeal. Apple later updated its App Store Guidelines in the US, allowing developers to incorporate alternative payment system links within their apps, while adhering to certain conditions.
In January, Apple also made major changes to its App Store policies in Europe. The updates aim to provide developers with extra app distribution options and payment systems while still trying to preserve user privacy and security.
Last Updated on November 7, 2024 2:38 pm CET
