A US court has banned Google from monopolizing the Android application market

A US court has ordered Google to loosen its grip on alternative Android app stores, banning the company from engaging in anti-competitive practices and limiting its ability to share revenue. This decision could have a significant impact on the Android app market.

Judgment against Google

Restrictions for Google Play

On October 7, a US court issued a ruling that obliges Google to soften its policy regarding alternative app stores for Android. The company is prohibited from using anti-competitive practices that give an advantage to Google Play.

Google banned US court limits Play Store monopoly

Consequences of the court decision

The ruling by Judge James Donato of California restricts Google from making payments and non-competitive profit sharing to companies in exchange for not using competing platforms. Alphabet shares fell more than 2% following the news.

Google banned US court limits Play Store monopoly

Background to the conflict

The court's decision was the result of an antitrust lawsuit Epic Games filed against Google in 2020. The creator of Fortnite has accused Google of anti-competitive behavior, including paying makers of Android hardware and phones to stop them from developing competing app stores.

Google banned US court limits Play Store monopoly

Jury verdict

In December 2023, a jury unanimously found that Google illegally dominates the market for Android apps and in-app payments. The court found an illegal connection between Google Play and Google Play Billing, and also found agreements with application developers and OEMs anticompetitive.

New restrictions for Google

According to the decree, from November for three years Google will not be able to:

Pay companies to launch apps exclusively or primarily on Google Play
Pay companies not to compete with Google Play
Reward for pre-installing Google Play on new devices
Require developers to use Google Play Billing
Prohibit informing users about better offers on developer sites

In addition, Google must allow competing Android app stores be present on Google Play.

Parties React

Epic Games and Google are to form a three-person committee to review technical compliance issues. Epic Games CEO Tim Sweeney said the decision gives app developers, stores and manufacturers three years to create a vibrant and competitive Android ecosystem. Google, in turn, plans to appeal the court's decision and ask to suspend the changes.

Glossary

Google Play - the official application store for the Android operating system
Epic Games - video game company, creator of Fortnite
Android - mobile operating system developed by Google
Alphabet - Parent Company of Google
OEMs - Original Equipment Manufacturers

Answers to questions

What decision did the US court make regarding Google Play?

A US court has issued a permanent injunction requiring Google to ease restrictions on alternative Android app stores. The company is prohibited from engaging in anticompetitive practices that favor Google Play, including paying other companies to avoid using competing platforms.

What restrictions are imposed on Google under the court order?

Google will not be able to pay companies for exclusive launch of applications on Google Play, for refusing to compete with Google Play, for pre-installing Google Play on new devices. It is also prohibited to require developers to use Google Play Billing and prohibit in-app notification of better offers on developer sites.

How might this decision impact the Android app market?

The court's decision may lead to a redistribution of the Android application market in favor of independent companies. Developers will be able to make greater profits by bypassing Google's rules and fees. This is expected to create a more competitive environment in the Android ecosystem.

What caused the lawsuit between Epic Games and Google?

The conflict began over in-game purchases in Fortnite. Epic Games has challenged Google and Apple's control over mobile app distribution. The company violated the rules of both platforms, which led to the removal of its applications and lawsuits. Epic Games has accused Google of blocking the app store market through agreements with phone manufacturers.

What is Google's reaction to the court's decision?

Google plans to appeal the court's decision and intends to ask for a suspension of the changes. The company expressed its position in a note on the corporate blog, emphasizing its disagreement with the verdict.

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2024-10-08

A US court has issued a permanent injunction limiting Google's monopolistic practices over the Play Store and app pre-installation on Android devices.

Rita Kochevskaya
Rita Kochevskaya Copywriter Elbuz

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