Early today, a US district court issued a permanent injunction against Google, effective November 1, 2024, within the United States. This injunction stems from a jury verdict that found Google in violation of antitrust laws (the Sherman Act and Cartwright Act) and the California Unfair Competition Law concerning the Google Play Store. The injunction specifically addresses Android app distribution for the next three years, with the following stipulations:
- Google cannot incentivize third parties to avoid creating competing Android app stores.
- Google cannot force developers to launch apps exclusively on the Google Play Store.
- Google cannot prevent developers from offering different features in apps available on other stores.
- Google cannot stop device manufacturers from pre-installing competing app stores.
- Developers are permitted to use payment systems other than Google Play Billing.
- Developers are allowed to inform users about their apps on alternative platforms.
- Users can download apps from other stores, but Google retains the revenue.
- Google can only impose reasonable security and content standards for third-party app stores.
- A Technical Committee will be formed to oversee the technical aspects of the injunction, with the Court retaining final authority.
Following this injunction, Google has confirmed its intent to appeal the court"s decision to pause the implementation of the remedies. Google argues that implementing these changes would jeopardize consumer privacy and security, hinder developers" ability to promote their apps, and ultimately reduce competition in the device market. Google"s appeal will center on the following points:
Apple and Google compete directly for consumers: The decision rests on a flawed finding that Android is a market in itself. In contrast, the Apple decision, upheld on appeal, rightly found that Android and iOS compete in the same market. This is obvious to anyone who has bought a smartphone. Walk into a store that sells smartphones and you’ll see the options side-by-side — Android phones from companies like Samsung, Motorola and many others competing right next to Apple’s iPhone. People choose between these phones based on price, quality and security.
Google and Apple compete directly for app developers: The decision ignores what every developer in the world knows — they have to prioritize investing in developing for iPhones and Androids. Developers have finite resources and have to decide how much time and money to devote to building and updating their apps for each platform. Like any business, Google wants developers to offer their best features for Android and to release them on Android first. So we build tools, run training programs and invest in making it as easy as possible to develop for Android. Apple of course does the same — competing to convince developers to prioritize iOS.
Android is open and Google Play is not the only way to get apps: The decision fails to take into account that Android is an open platform and developers have always had many options in how to distribute their apps. In fact, most Android devices come preloaded with two or more app stores right out of the box. Developers have other options too, such as offering their apps directly to users from their websites. For example, Epic Games has made its popular Fortnite app available to Android users through the Samsung Galaxy Store, sideloading, and the Epic Games Store – all while Fortnite was not distributed through Google Play. These are options that developers have never been able to offer to their American users on iPhones.
The court"s decision and Google"s appeal will likely have a significant implications for the future of Android app distribution and the mobile app market as a whole.
Source: Google | Image via Depositphotos.com