In the span of two days this week, Alphabet’s (GOOGL.O) Google faced a court order to open its app store, Play, to rivals and learned that the U.S. Justice Department may soon request a judge to break up the company to limit its control over online searches.
U.S. Antitrust Cases Against Google
Android Apps
U.S. District Judge James Donato in San Francisco ordered Google to overhaul parts of its Android app business. This ruling will bring significant changes for consumers, developers, and mobile device makers. Starting in November, Google must allow Android users to download rival app platforms and use competing in-app payment methods. Additionally, Google cannot pay device makers to preinstall its app store, Play.
Epic Games, the maker of “Fortnite,” filed a lawsuit against Google in 2020, accusing it of monopolizing Android app distribution and payments. Google plans to appeal the underlying jury verdict and challenge the court-ordered changes. In a related case, Google has proposed a $700 million settlement to resolve claims by consumers and U.S. states regarding inflated app prices, pending before Judge Donato, who questions whether the amount is adequate. Epic recently filed a new lawsuit accusing Google of unlawfully conspiring with Samsung to protect Play from competition, which both companies deny.
Online Search
The Justice Department’s lawsuit, filed in federal court in Washington in 2020, targets Google’s dominance in online search. U.S. District Judge Amit Mehta ruled in August that Google has established an illegal monopoly by paying billions to other companies to make it the default search engine. On Tuesday, the Justice Department indicated that it might seek a court order to break up parts of Google to remedy its antitrust violations. The government will submit specific proposals in November, and Google plans to propose its own remedies in late December. The judge will hear arguments in April 2025.
Digital Advertising
Google also faces multiple lawsuits challenging its dominance in the online display advertising market. U.S. District Judge Leonie Brinkema in Virginia recently held a non-jury trial in a case filed last year by the Justice Department and a group of states. These lawsuits accuse Google of unlawfully dominating all sides of the ad market, forcing customers to use its products, and using its size to eliminate rivals. Closing arguments for this case are set for late November. Additionally, Texas leads a group of states suing Google over digital ads, with a trial scheduled for March 2025. Publishers and advertisers have also pursued related claims against Google, alleging that the company overcharged them and caused lost revenue.
