In a significant ruling on Monday, a U.S. District Judge ordered Alphabet’s Google to overhaul its mobile app operations, enhancing options for Android users to download apps and make in-app purchases.
This decision follows a jury verdict last year favouring Epic Games, the developer of “Fortnite,” according to Reuters.
Judge James Donato, based in San Francisco, issued an injunction mandating that Google implement changes aimed at increasing competition within its Play Store.
The order prohibits Google from blocking the use of alternative in-app payment methods for a period of three years and requires the company to allow the downloading of third-party Android app platforms or stores.
This ruling marks a pivotal moment in the ongoing debate over app store practices and competition in the tech industry.
The ruling also restricts Google from paying device manufacturers to preinstall its app store and from sharing revenue from the Play Store with other app distributors.
In response, Google announced plans to appeal the verdict that prompted the injunction to the 9th U.S. Circuit Court of Appeals, seeking a stay on Judge Donato’s order while the appeal is underway.
“Ultimately, while these changes presumably satisfy Epic, they will cause a range of unintended consequences that will harm American consumers, developers and device makers,” Google said.
Epic Games did not immediately respond to a request for comment on the ruling.
Following the decision, Alphabet’s shares fell 2.5%, closing at $164.39.
Judge Donato also mandated that Epic and Google form a three-person technical committee to oversee the implementation and monitoring of the injunction. Each party will select one member, who will then choose a third member to complete the committee.
Donato said his injunction would go into effect on Nov. 1, which he said will give Google time to “bring its current agreements and practices into compliance.”
Epic’s lawsuit, filed in 2020, accused Google of monopolizing access to apps on Android devices and controlling how consumers pay for in-app transactions.
