Judge orders Google to open Android to third-party app stores

Judge James Donato, who presided over the Epic vs. Google lawsuit that found Google operated an illegal monopoly with its Google Play Store on Android last year, issued a final ruling Monday requiring that the mobile operating system of the company must be opened to third parties. Party app stores for three years. Google says it will appeal the decision.

“These changes would jeopardize consumer privacy and security, make it harder for developers to promote their apps, and reduce competition on devices,” Lee-Anne Mulholland, vice president of regulatory affairs at Google, said in a press release. “While these changes are likely to satisfy Epic, they will ultimately have a number of unintended consequences that harm American consumers, developers and device manufacturers.”

Mulholland pointed to a contrary ruling in the separate Epic Games lawsuit against Apple, which did not declare the iPhone maker a monopoly although it still had to open iOS to third-party payment mechanisms. She also pointed out that unlike iOS, Android is an open platform that allows for multiple app stores and sideloading of apps. She said Google's appeal will be an argument that both Apple and itself are constantly competing for consumers and app developers in the free market.

“Android has helped expand choice, lower prices and democratize access to smartphones and apps,” Mulholland said. “The original decision and today’s changes requested by Epic jeopardize this and undermine Android’s ability to compete with Apple’s iOS.”

Google referred Mulholland's press release when asked for comment. Epic Games referred to a series of posts by founder and CEO Tim Sweeney on X, the social media platform formerly known as Twitter, instead of issuing a statement.

Judge Donato's ruling ends a long-running dispute that Epic Games, the maker of the hugely popular video game Fortnite, has had with the Apple and Google app stores. Both stores charge a 30% licensing fee for all app purchases. Epic's Sweeney calls this an “app tax,” which also includes in-app purchases, meaning that if you buy a $1 skin in Fortnite, 30 cents would have to go to either Google or Apple. Epic Games tried to get around this fee in 2020 by introducing Fortnite with an external payment option. This caused both Apple and Google to ban Fortnite, which sparked Epic's lawsuit.

The Fortnite maker argued that each company was operating an illegal monopoly with its app stores and the associated restrictive payment controls. The same types of payment restrictions do not apply to other online devices such as MacBooks and PCs. Judge Yvonne Gonzalez Rogers ruled in favor of Apple, saying that Apple does not maintain a monopoly with its App Store, but also requires it to open up to third-party payment methods.

The Supreme Court declined to hear Epic Games' appeal in the Apple lawsuit. It is uncertain whether the Supreme Court will uphold Google's appeal in the lawsuit against Epic Games.