A federal judge in California has indicated that Alphabet Inc.’s Google will be required to make changes to its app store in the near future. The judge criticized Google for not accepting a jury verdict that found the company had monopolized Android app distribution and billing. The jury’s decision came after a lawsuit from the maker of Fortnite, which alleged that Google had unlawfully abused its power over Android apps, leading to significant revenue for the tech company in 2020.
US District Judge James Donato in San Francisco is overseeing the case and is reviewing potential policy changes that Google must implement to comply with antitrust laws. Donato mentioned during a recent hearing that he plans to issue a ruling in the coming weeks, considering a remedy that would have global implications due to the jury’s findings of anticompetitive practices on an international scale.
The judge, critical of Google’s reluctance to adopt proposed remedies by Epic Games Inc., emphasized the need for swift action. Donato expressed dissatisfaction with Google’s estimated timeline of 12 to 16 months for implementing changes, urging the tech giant to expedite the process.
This case marks an attempt to address Google’s dominance following years of antitrust scrutiny in Europe, where fines exceeding 8.25 billion euros have been imposed. The ruling will have significant implications for Google Play, which generates revenue through commissions from software developers. The jury’s verdict in December found Google guilty of illegal monopolization outside of China.
Another recent ruling in a separate federal court found Google guilty of monopolizing online search and advertising markets. The Justice Department is considering potential actions, including a breakup of the company, in response to this ruling. In the ongoing legal battle, Epic has requested remedies such as granting third-party app stores access to Google Play, with a proposed timeline of six years. Google has argued for a shorter period, indicating that competition should be able to thrive without prolonged intervention.
Donato’s ruling is expected to last at least three years, and he plans to appoint a technical committee to oversee Google’s compliance with the order. Despite assurances that he does not intend to micromanage Google’s operations, the judge remains committed to upholding fair competition practices. The case reflects a broader trend of challenges against tech companies’ dominance in the app market, with Epic also pursuing an antitrust case against Apple Inc.’s app store.
