A setback for Google: an American judge forces the tech giant to give competing download stores ample space in Android, the most used operating system worldwide.
On Monday, California District Court Judge James Donato announced the ruling. It is the preliminary conclusion of a lawsuit filed in August 2020 by game developer Epic. That company, creator of the popular game Fortnite, no longer wanted to be dependent on the download stores of the major operating systems, Apple iOS and Google Android. Fortnite is a game with tens of millions of players, who make many digital purchases.
On phones, Apple and Google charge rates of up to 30 percent for the distribution of paid software and digital services. Epic wants to be able to operate its own download store on mobile phones, without having to give up margin to Apple or Google.
Epic had little success with Apple, but the Google case turned out differently.
The judge demands that Google make major changes as of November 1. The result is that consumers will soon be able to avoid the Play Store, Android’s standard download store, more easily when they buy a new app or take out a digital subscription.
That can save a lot of money, and it also fuels competition. Android has a market share of approximately 70 percent worldwide. The total market for mobile apps is estimated at around 200 billion dollars (182 billion euros) per year, with significant growth in the offing.
Lee-Anne Mulholland, who represents Google on regulatory matters, explained in a blog post that the company will appeal the ruling: “This court decision clearly overlooks the fact that Google competes with Apple.” However, the judge views Android as a market in itself, not as a competitor of Apple.
Shopping street
Apple and Google have the say in their operating systems, iOS and Android. That is why buying software on a phone has until now been comparable to shopping in a shopping street with only one store (Apple iOS). Or, in the case of Google Android, a shopping street with one huge supermarket and a few small stalls that hardly anyone knows where to find.
At the end of 2023, an American jury had already determined that Google engaged in illegal practices to perpetuate the monopoly position of the Play Store. The company has in the past offered benefits to phone makers, game developers and digital services if they offered their content exclusively on the Play Store and not on competing stores on the Android platform.
California judge James Donato demands that Google allow software developers to offer their own stores in the Play Store for the next three years, and that they also have access to the Play Store catalog in order to be able to put together a full-fledged offering.
Donato accused Google of flooding the court with “a flood of volatile comments” that, in his view, made no sense.
The measures that Google must take apply to the American market. Things are different in Europe: the Digital Markets Act forces the large tech companies to open their platforms. Anyone who does not comply with the rules will face a fine. Apple is the first company to run this risk, because it only meets DMA requirements only sparsely.