In a challenging week for Alphabet Inc.’s Google, the tech giant received a court mandate to open its Play Store to competitors and faced potential government action that could lead to the company’s breakup due to antitrust concerns.
Android Apps Under Scrutiny
On Monday, U.S. District Judge James Donato ordered significant changes to Google’s Android app ecosystem. The ruling mandates that starting in November, Google must allow Android users to download apps from rival platforms and utilize competing in-app payment systems. Additionally, the company is prohibited from financially incentivizing device manufacturers to preinstall its Play Store. This order stems from a lawsuit filed by Epic Games, the creator of the popular video game Fortnite, which accused Google of monopolizing app distribution and payments. Google has stated its intent to appeal both the jury’s verdict and the judge’s ruling.
In a related case concerning its Play Store, Google agreed to a proposed $700 million settlement aimed at addressing claims that it charged inflated app prices. However, Judge Donato has raised questions regarding whether this amount is adequate. Furthermore, Epic Games has initiated a new lawsuit against Google, alleging unlawful collaboration with Samsung to stifle competition for the Play Store, claims that both companies deny.
Online Search Dominance at Issue
Google’s supremacy in the online search market is central to a separate antitrust lawsuit filed by the U.S. Justice Department in 2020. In August, Judge Amit Mehta determined that Google had established an illegal monopoly by paying billions to ensure it remained the default search engine on various platforms.
On Tuesday, the Justice Department indicated that it might seek a court order to dismantle parts of Google as a remedy for its antitrust violations. Specific proposals, including the potential divestiture of Google’s Chrome browser and Android operating system, are expected to be submitted by November. Meanwhile, Google is slated to propose its own remedies by late December, with a hearing scheduled for April 2025 to discuss the case further.
As these legal battles unfold, Google’s future as a dominant player in both app distribution and online search hangs in the balance.
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