US judge orders Google to open app store to competitors

A US federal judge has ruled that Google must allow Android apps from rival technology companies in its Google Play app store for three years starting next month.

The change was one of several remedies ordered by Judge James Donato in a case against Google by Epic Games, maker of the hit video game Fortnite.

Google says it will appeal the decision and seek a stay on the proposed remedies.

In December, a jury agreed with Epic that Google had stifled competition by controlling the distribution of apps and payments on Android phones.

“The changes would jeopardize consumer privacy and security, make it harder for developers to promote their apps, and reduce competition on devices,” Google said in a statement.

Some legal experts hailed the ruling as a significant challenge to the dominance of a handful of tech giants.

“It shows that courts are not necessarily opposed to asking dominant platforms to share access with competitors in the name of competition,” said Rebecca Haw Allensworth, a professor at Vanderbilt Law School.

Among other things, the ruling required Google to make its app catalog available to competing app stores.

“This is not something that antitrust law typically requires,” said Mark Lemley, a professor at Stanford Law School. “But the judge correctly noted that once you have violated antitrust laws, courts can order you to take affirmative action to repair the harm you caused, even if you were not required to do so in the first place.”

Google had argued that its Play App Store operates in a competitive landscape, citing competition with iPhone maker Apple, which was also sued by Epic Games in 2020.

That case ended with an appeals court ruling that Apple does not have a monopoly on mobile gaming.

Monday's order is the latest legal blow Google has suffered over competition concerns in recent years.

In August, U.S. District Judge Amit Mehta sided with the U.S. Department of Justice, which accused the company of operating an illegal monopoly in online search.

Last month, District Judge Leonie Brinkema concluded a hearing into similar government claims that Google dominates the advertising technology market.

The company's critics say Google's fees of up to 30% on every App Store payment have resulted in higher prices for consumers.

“That’s a rate they could charge because they were a monopoly,” said Lee Hepner, senior legal counsel at the American Economic Liberties Project.

Mr Hepner said the ruling was likely to change that.

“There will be much more incentive for developers to enter this market and prices for consumers should be lower,” he said.