Google is ordered to open the Play Store to competition – Exponent

On Oct. 7, a federal judge ordered Google to tear down the digital walls that protected its Android app store from competition as punishment for maintaining an illegal monopoly that helped expand the company’s Internet empire.

The preliminary injunction issued by U.S. District Judge James Donato requires Google to make several changes that the company had resisted. That includes a provision that requires the Play Store for Android apps to outcompete competing third-party app stores so consumers can download them to their phones. The judge’s order will also make the millions of Android apps in the Play Store library available to competitors, allowing them to offer a competitive selection.

The court-ordered overhaul is intended to prevent Google from maintaining competition in the Android app market. As part of an effort to protect a commission system that has been a boon for one of the world’s wealthiest companies and helped push the market value of its parent company, Alphabet Inc., to $2 trillion.

Donato also ruled that for a period of three years, ending November 1, 2027, Google cannot share revenue from its Play Store with anyone who distributes Android apps or is considering launching a distribution platform or store for Android apps . They are also not allowed to pay developers or share revenue to launch an app first or exclusively on the Google Play Store, and they cannot make agreements with manufacturers to pre-install the Google Play Store in a specific location on an Android device. Device. It also won’t be able to require apps to use its billing system or tell customers they can download apps elsewhere and potentially at a cheaper price.

Google said in a blog post that it would ask the court to suspend the pending changes and appeal the court’s decision. “If the verdict survives the appeal process, Google will almost certainly suffer a decline in sales,” said Emarketer analyst Evelyn Mitchell-Wolf. “Undoubtedly, some of the biggest app developers like Epic Games will start to grab Google Play Store market share, meaning Google will lose its usual cut of subscriptions and in-app purchases.” The analyst added that the While Google Play Store will likely continue to benefit from brand recognition since it has been the default Android app store for so long, “some consumers may defect if they get better deals on their favorite apps elsewhere.”

App developers will likely take the opportunity to educate consumers about direct downloads. “As a result, Google may see reduced Play Store revenue even among Android users who stick to the default setting,” Mitchell-Wolf said.

Donato is giving Google until November 1 to make the changes required by his order. The company had insisted it would take 12 to 16 months to develop the necessary protections to reduce the likelihood of potentially malicious software entering rival Android app stores and infecting millions of Samsung phones and other mobile devices. that run the free Android software.