Google Play Store is poised for a major transformation in the US after a district court ordered the tech giant to promote competition in its Android app ecosystem by taking certain steps.
In Epic Games’ lawsuit against Google, a federal jury had unanimously decided last year that the Google Play Store and the Google Play Billing service were an illegal monopoly. In his ruling on Monday, October 7, Judge James Donato outlined what Google has to do to fix the damage caused by its monopoly.
For the next three years, Google has been ordered to let users download third-party app stores, like Epic Games Store, through the Play Store app. The developers of rival third-party app stores are to be given access to the full catalogue of Google Play apps so that they have “a fighting chance of getting off the ground,” as per the order.
While Google has said that it will be seeking a stay, Monday’s ruling marks the culmination of a four year-long antitrust fight between the Fortnite maker and the big tech company. It also means that Google could face genuine competition in the Android app marketplace for the first time, at least in the US.
From November 1, 2024 to November 1, 2027, Google has been ordered to let apps use their own billing systems for in-app payment purchases instead of being forced to use only Google Play Billing. Previously, the jury had found that Google had violated the law by tying its payment system to the app store.
The court also ordered Google to remove the anti-steering provisions in its policy, which restricts app developers from linking to external payment options as well as informing users about it.
Additionally, Google has to let app developers inform users about the availability and pricing of their apps outside the Play Store, and the company cannot stop them from providing users with a link to download the app outside the Play Store (also known as sideloading).
To stop Google from maintaining its dominance in the app distribution market, the court has prohibited the company from offering app developers money or perks to exclusively launch their apps on the Play Store.
It is also not allowed to share app revenue “with any person or entity that distributes Android apps” or plans to launch an app store or app platform.
Notably, Google is no longer allowed to ink deals with smartphone manufacturers like Samsung for the Play Store app to be pre-installed on Android devices. Furthermore, the company cannot offer money to device makers or carriers so that they don’t pre-install third-party app stores on their devices.
During the hearings, Epic Games had argued that Google entered into agreements with various app developers, smartphone manufacturers, and carriers that made it impossible for rival app stores to compete. The jury was also convinced that “Google entered into one or more agreements that unreasonably restrained trade in a relevant antitrust market” including “agreements with OEMs [original equipment manufacturers] that sell mobile devices.”
The pro-competition changes to the Play Store have to be in place for three years, though Epic had initially sought a six-year period. Dismissing Epic’s argument, the judge said, “The provisions are designed to level the playing field for the entry and growth of rivals, without burdening Google excessively.”
“As competition comes into play and the network effects that Google Play unfairly enjoys are abated, Google should not be unduly constrained as a competitor,” he added.
On the threat of malicious apps making their way to the Play Store, the court said that Google is entitled to take reasonable measures “to ensure that the platforms or stores, and the apps they offer, are safe from a computer systems and security standpoint.”
If Google’s takedown of an app is challenged, the decision is required to be reviewed by a three-member Technical Committee comprising one Google representative and one Epic representative, both of whom will pick the third committee member.
The court said that Google can charge a fee to app developers and app store owners for its policing efforts.
Emphasising that it will appeal the ruling, Google said that the court-ordered Play Store changes will lead to “a range of unintended consequences that will harm American consumers, developers and device makers.”
“These Epic-requested changes stem from a decision that is completely contrary to another court’s rejection of similar claims Epic made against Apple — even though, unlike iOS, Android is an open platform that has always allowed for choice and flexibility like multiple app stores and sideloading,” the company said in a blog post.
On the other hand, Epic Games CEO Tim Sweeney said in a post on X, “The Epic Games Store and other app stores are coming to the Google Play Store in 2025 in the USA — without Google’s scare screens and Google’s 30% app tax — thanks to victory in Epic v Google.”
In 2020, Epic Games had sued both Google and Apple after the developer’s popular game, Fortnite, was booted from the Play Store and App Store for attempting to bypass the 15 to 30 per cent fee on in-app purchases.
In the Epic Games vs Apple lawsuit, the US court had ruled in favour of Apple on most counts. However, the iPhone maker was ordered to disable its anti-steering rules and let app developers tell users about external payment options.