By: Matthew Bellavia

Android devices must allow alternative options to the Google Play Store as soon as November 1, 2024. A federal judge ordered Google to enable developers to publish applications via third-party markets outside of the Google Play Store, and to allow alternative payment systems within these apps, marking a significant victory for developers. While the November 1 deadline is currently paused for an administrative stay, app developers are eager for the changes to arrive. One key player is Epic Games, the creator of the popular video game Fortnite, which generated over one-billion dollars in revenue from mobile apps before its removal. 

History of the Epic Games vs. Google Feud 

In 2020, Fortnite was one of the hottest video games in the world, with 350 million registered users worldwide. As a leader in the movement towards the free-to-play with in-app purchases business model for modern video games, Fortnite relied on purchases of virtual items in game to generate revenue. Epic Games decided to launch their own in-app payment method for purchasing items on mobile devices. This decision allowed them to circumvent Google’s typical 15-30% commission on all in-app transactions made through the Google Play Store and iOS App Store.  

Within hours, Google removed Fortnite from the Google Play Store, and Epic responded by filing an antitrust lawsuit. In December 2023, a jury found that Google turned its Google Play Store and billing service into an illegal monopoly. Now in October 2024, U.S. District Judge James Donato issued an injunction forcing Google to offer alternative app stores and payment methods on Android devices by November 1st, 2024 and for at least three years. As of October 18, 2024, this injunction is currently paused under administrative stay. 

Relevant Law 

The Epic v. Google jury found Google in violation of the Sherman Act – which outlaws monopolization and unreasonable restraint of trade. The jury affirmed that Google’s control over the app store and payment systems were sufficiently anti-competitive practices, and that Google had leveraged its market dominance through deals with partners to maintain its monopoly. 

Impact on Developers 

For developers, this ruling marks a significant victory within an industry where two tech giants have held enormous control over app distribution and monetization for over a decade. No longer confined by Google’s proprietary payment system, developers publishing to Android devices will be permitted to publish and collect payments without using Google Play Billing and without the 15-30% commission.  

These changes could result in a significant reduction of cost for consumers of these apps as profit margins are expanded for developers. Moreover, Google will no longer be screening all applications accessible to Android users, opening the door for additional variety, but also bad actors. Google is appealing the injunction, arguing sufficient competition exists between Apple and Google and warning of an increase in malware, violations of privacy, and other negative consequences of decentralizing the Android ecosystem.  

Impact on Consumers 

For users of Android devices, this change will bring benefits and drawbacks. Cheaper in-app purchases without Google’s tax could drive down prices, allowing consumers to enjoy the same services at a lower cost. Moreover, a wider selection of apps will be available to users without the need for Google’s stamp of approval. The drawback is additional risk regarding malware and abuse of privacy/data. Both Android and iOS are known for the strong security of their mobile devices – a direct result of the control and review their creators maintain. 

What about Apple? 

Wondering why Apple isn’t facing the same consequences as Google? You’re not alone. While Apple “won” their similar case against Epic in 2021, current developments are likely to bring additional scrutiny to Apple’s practices for years to come. In a similar lawsuit, Apple finally adopted RCS messaging, a protocol solving the iPhone’s inability to text efficiently with Androids, in the latest major iOS update. However, this seemingly simple change came only after the Department of Justice filed a lawsuit accusing Apple of deliberately making texting frustrating for Android users, a claim Apple denies. 

Takeaways and Predictions 

It should not come as a surprise that Google was unhappy with this development and is filing to appeal. As a defense, they will cite industry standards and the current competition between Google and Apple. If unsuccessful, this ruling will be another setback to Google, as it struggles to maintain its dominance over the information industry.  

Regardless of the outcome, this story demonstrates the increasing scrutiny of monopolistic practices driving the technology sector. Once the temporary stay is removed and the injunction takes effect, regulators, developers, and leaders of the technology industry will be watching to see how this ruling shapes the Android ecosystem. Will the marketplace diversify, or will Google’s security concerns come to light? One thing is for certain – Epic Games is happy with this decision. 

#antitrust #epicvgoogle #techlaw