Google Loses to Epic: Android Users to Get More App and Payment Options

A U.S. district court has ordered Google to revamp its Android app distribution and payment practices following a legal victory by Epic Games, the maker of Fortnite. On Monday, Judge James Donato of the U.S. District Court in San Francisco ruled that Google must open up its Play Store to more competition, allowing Android users to download apps from alternative sources and utilize third-party in-app payment methods.

The ruling stems from a lawsuit filed by Epic Games in 2020. Epic accused Google of monopolizing app distribution and in-app payments on Android devices. Epic argued that Google’s policies were anti-competitive, particularly its restrictions on alternative app stores and in-app payment systems.

Under the new order, Google is prohibited from paying device manufacturers to pre-install its Play Store and must cease revenue-sharing agreements with other app distributors. The court’s decision will take effect on November 1, giving Google time to adjust its practices. This ruling marks a significant step toward increasing competition in the mobile app marketplace.

Google responded by announcing plans to appeal the decision to the U.S. Court of Appeals for the Ninth Circuit and seek a stay to delay the order’s implementation during the appeal process. In a statement, Google said, “While these changes presumably satisfy Epic, they will cause a range of unintended consequences that will harm American consumers, developers, and device makers.”

Epic’s legal battle against Google mirrors its broader campaign against platform owners, such as Apple, whom it has also accused of monopolistic practices. In this case, Epic specifically challenged Google’s dominance over how consumers access apps and the lack of choice in in-app payment methods.

Google had urged the court to reject Epic’s proposed reforms, arguing that they would be expensive, overly restrictive, and pose risks to consumer security. However, many of these claims were dismissed in an August hearing. Following the news, Alphabet’s stock closed down 2.5% at $164.39.