Judge Says ‘Monopolist’ Google Can’t Avoid App Store Reforms

Google App Store Reforms

A U.S. judge announced on Wednesday plans to issue an order compelling Alphabet’s Google to provide Android users with more options to download apps, following last year’s jury verdict in favor of “Fortnite” maker Epic Games. U.S. District Judge James Donato in San Francisco listened to technology experts and lawyers from Epic and Google as they debated proposed reforms in the high-profile antitrust case.

Donato expressed impatience with Google’s complaints about the costs and challenges of implementing many of Epic’s proposals. He signaled his intention to issue a ruling that would enhance the flexibility for users and developers to download and distribute apps outside the Play Store.

“You’re going to pay something to make the world right after being found to be a monopolist,” Donato stated. He plans to craft a concise, three-page injunction that clearly outlines the “rules of the road” for Google.

Donato intends to issue his ruling in the coming weeks and will establish a three-person compliance and technical committee to oversee and implement the injunction. “Google foreclosed competition for years. We’re now opening the gate and letting competitors enter,” Donato added.

Epic’s lawsuit accused Google of monopolizing the methods consumers use to access apps on Android devices and to pay for in-app transactions. The Cary, North Carolina-based company successfully convinced a jury in December 2023 that Google unlawfully stifled competition through its control over app distribution and payments.

Epic has urged Donato to require Google to simplify the process for Android users to download apps from third-party app stores, including Epic’s, as well as from other internet sources. The company also seeks a court order preventing Google from automatically installing its Play Store on Android devices.

Google, denying any harm to competition, argued that Epic’s proposals would make it “nearly impossible” for the Alphabet unit to compete and would compromise consumer privacy and security. Google’s lawyer, Glenn Pomerantz, insisted that the company should not be forced to distribute its rivals’ app stores. “Competition will worsen if you impose a duty to deal with your competitor,” Pomerantz warned.

Meanwhile, Epic’s lawyer, Gary Bornstein, pressed the court to direct Google to implement the injunction swiftly.

Google also faces another challenge to its business practices in a separate government lawsuit in Washington, D.C., which targets the company’s dominant search engine. U.S. District Judge Amit Mehta ruled last week in favor of the U.S. Justice Department, declaring that Google had illegally monopolized web search by spending billions to become the internet’s default search engine. Mehta has scheduled a hearing on September 6 to discuss the timeline for imposing remedies on Google in that case.