US judge orders google to overhaul app store to more competition

Judge James Donato, based in San Francisco, issued an injunction that mandates Google to open its Play Store to more competition.

A US judge on Monday ordered Google to revamp its mobile app operations, giving Android users more freedom in app downloads and payment methods. This follows a jury ruling last year in favour of Epic Games, the maker of “Fortnite.”

Judge James Donato, based in San Francisco, issued an injunction that mandates Google to open its Play Store to more competition. The ruling requires Google to allow Android apps from other sources and ensure users can access alternative in-app payment methods.

For the next three years, Google cannot restrict the use of third-party app stores or force payments to device makers for preinstalling its Play Store. Additionally, the company is barred from sharing revenue with other app distributors.

Google has announced plans to appeal the ruling to the 9th US Circuit Court of Appeals. The tech giant will also seek a suspension of Donato’s order pending the outcome of the appeal. Google stated the ruling could lead to "unintended consequences" that may harm consumers and developers.

Epic Games CEO Tim Sweeney described the decision as significant, saying rival app stores, including Epic’s, will launch on Google Play by 2025. He believes the decision gives developers a chance to create a competitive Android ecosystem.

Alphabet shares dropped 2.5%, closing at $164.39 after the ruling. Donato's injunction is set to take effect on November 1, giving Google time to adjust its current agreements.

Epic’s 2020 lawsuit accused Google of monopolising app distribution and payments on Android. After a jury ruled in favour of Epic in December 2023, Donato’s injunction followed. Google had argued that Epic's proposed changes were too costly and would jeopardise user privacy, but the judge largely dismissed these concerns.

Google also faces other antitrust challenges, including rulings about its dominance in web search and advertising technology, both of which are under federal scrutiny. The company continues to deny the claims across all these cases.