In a landmark ruling on Monday, a U.S. judge ordered Alphabet Inc. (GOOGL.O) to significantly reform its mobile app ecosystem, mandating that Google enhance options for Android users regarding app downloads and transaction payments. This decision follows a jury verdict last year favoring Epic Games, the creator of the popular game “Fortnite.”
U.S. District Judge James Donato, based in San Francisco, issued an injunction detailing the necessary changes to Google’s Play Store, aimed at fostering greater competition. The ruling specifically prohibits Google from blocking alternative in-app payment methods and requires that users be able to download third-party Android app platforms or stores over the next three years.
The injunction also restricts Google from financially incentivizing device manufacturers to preinstall its app store and from sharing revenue generated from the Play Store with other app distributors.
In response to the ruling, Google announced plans to appeal the verdict to the 9th U.S. Circuit Court of Appeals in San Francisco, requesting that the court pause Judge Donato’s order while the appeal is pending. The company expressed concerns about the implications of the ruling, stating, “While these changes presumably satisfy Epic, they will cause a range of unintended consequences that will harm American consumers, developers, and device makers.”
Epic Games CEO Tim Sweeney hailed the ruling as “big news” on the social media platform X, stating that the Epic Games Store and other app stores would launch on Google Play in 2025. He emphasized that developers, store creators, and other stakeholders now have three years to establish a vibrant and competitive Android ecosystem that Google cannot impede.
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