Epic Games’s lawsuit against software giant Google has resulted in a win for the game developer. And, possibly, everyone else who wants an app store. Epic v Google has raged on since 2020 over Google’s anticompetitive practices in relation to the Google Play Store and its payment systems. In a final ruling, the Google Play Store is being forced to open itself up to competition for the next three years so the Epic Games Store, and other third-party app stores, can have a bit more breathing room.
Epic v Google: a short history
In December 2020, a jury unanimously found that Google engaged in anticompetitive practices, establishing an illegal monopoly through its Google Play app store and in-app billing services. The jury concluded that Google used its market dominance to stifle competition, with secret revenue-sharing deals with smartphone makers and developers to suppress rival app stores.
Google’s result contrasts Apple’s, which escaped the lawsuit largely unscathed. The reasons for this are varied, but ultimately come down to the fact that Apple’s iOS is one component of a larger ecosystem entirely produced and controlled by Apple. Google, conversely, does not own most of the phones Android is installed on, ruling that its ties to the Google Play Store and its billing systems are anti-competitive. The only win Epic managed was the ridding of Apple’s “anti-steering” rules, meaning developers can freely tell consumers how to bypass Apple’s payment systems.
An Epic result
This August Google tried to assert to Judge James Donato that Epic’s demands were too labour-intensive, costly, and would require much time to enact. They were rebuffed. The judge’s final ruling means that from the November 1st injunction, Google must 1) stop requiring Google Play Billing for apps on the Google Play Store (it was found that Google had illegally tied its payment system to its app store), 2) let Android developers inform users about other payment methods within the Play Store, 3) allow developers to link to download methods outside the Play Store, and 4) allow Android developers to set their own prices for apps regardless of Play Billing.
Furthermore, Google can’t 1) share app revenue “with any person or entity that distributes Android apps” or plans to launch an app store or platform, 2) offer developers money or perks to launch their apps on the Play Store exclusively or first, 3) offer developers money or perks not to launch their apps on competing app stores, or 4) offer device makers or carriers money or perks to preinstall the Play Store. And lastly, they can’t offer device makers or carriers money or perks to not preinstall rival app stores.
Epic convinced juries that these practices made it near-impossible for competing app stores to thrive. Even so, it was unable to get all it asked for. The company asked for the Play Store to be opened up for six years instead of three; allow users to sideload apps with one tap, and to sever ties between Android’s APIs and Google Play.
Google also retains the ability to dictate its safety and security guidelines as it opens itself up to various third-party stores. “The provisions are designed to level the playing field for the entry and growth of rivals,” writes Judge Donato in his order, “without burdening Google excessively.” Epic has repeatedly argued against Google’s power to exclude apps via policy, so this disagreement will continue to be litigated over the coming years.
When Google will follow through on the ruling is unknown. The software giant plans to appeal the ruling. In a recent blog post, Epic’s demands are on hold for now. Judge Donato is giving Google eight months to implement this new system. He is also appointing a three-person technical committee jointly chosen by Epic and Google to review disputes.