A federal judge in San Francisco ordered the changes on Monday in the wake of a successful lawsuit from Epic, the maker of the popular video game Fortnite, which claimed… Google Suppressed competition in applications Android It used its monopoly to impose excessive fees.
- US District Judge James Donato issued an injunction prohibiting Google from paying developers to “release an app first or exclusively” in… Google Play Store.
- It can no longer force customers to use its internal billing system, which charges fees of up to 30 percent.
- Additionally, Google can no longer strike revenue-sharing deals with mobile device manufacturers like Samsung and LG to pre-install the Google Play Store prominently on their home screens — or push them not to pre-install a competing Android app distribution platform — under the injunction, which goes into effect. On November 1st and lasts for three years.
- Google should also allow third parties access to its app library during that time period so it can build a legitimately competitive product.
And she claimed Epic company In the lawsuit, Google paid money to network operators such as AT&T and T-Mobile and game developers such as Activision Blizzard to prevent them from launching competitors to the store. Google Play.
According to a report by the British newspaper the Financial Times, seen by the “Eqtisad Sky News Arabia” website, the ruling gives Epic most of what it sought in the case and may affect a lucrative revenue stream for Google, which made an operating profit of $12 billion from the Play Store in The year is 2021 alone, according to evidence presented in the case. (It is noteworthy that the company does not routinely disclose the performance of its Play unit.)
Google said it would appeal the ruling and asked for the changes to be suspended, arguing that they would jeopardize customer privacy and data security.
According to the report, the injunction may have a broader impact on the strict controls imposed by major technology companies on their mobile application stores.
Epic lost a related case against Apple in 2021, when a California judge concluded that the iPhone maker did not break the law by imposing rules that blocked competing stores and payment methods on its devices. The Court of Appeal upheld the ruling; Epic is seeking review from the US Supreme Court.
“All app developers, store makers, carriers and manufacturers have 3 years to build a vibrant and competitive Android ecosystem with such critical mass that Google cannot stop it,” Epic CEO Tim Sweeney said at a conference.
“The court order applies only to the United States, so the legal and regulatory battle will continue around the world,” Sweeney added.
In August 2020, the game maker intentionally circumvented Apple and Google’s payment rules, leading to the removal of Fortnite from their stores.
The future of Google Play
In turn, technology expert, Mohammed Al-Harithi, said in statements to the “Eqtisad Sky News Arabia” website, that after the recent judicial ruling issued in the antitrust case, it seems that the future of the Google App Store may witness a major shift. Al-Harithi pointed out that Epic Games has accused Google of controlling how consumers access applications on devices AndroidThis is what the court considered Monopolistic practice Illegal.
Al-Harithi explained that these changes do not represent merely formal amendments, but may lead to a complete restructuring of the market. With developers able to keep a greater portion of their revenue, away from the 15 to 30 percent fees imposed by Google, we may see an increase in innovation and diversity in smartphone applications.
He added that this ruling not only carries potential negative repercussions for Google in terms of expected revenues from App Store and billing system. The company may face increasing regulatory pressure in other monopoly cases, whether in search or advertising, further complicating its market position.
Al Harithi concluded that these changes are not just the result of a lawsuit, but also reflect a shift in the global technology landscape, as developers seek to gain more control over their platforms. If well managed, this transition could lead to a more competitive environment that benefits consumers and developers alike.
It is noteworthy that the App Store is only one of the antitrust battles that Google defends. In August, the company lost a case against the US Department of Justice over its monopoly on online search.
Furthermore, the Department of Justice is suing Google for its alleged monopoly control over digital advertising, with the future of its $20 billion ad technology business at risk. The trial began last month in Virginia.
Different effects
In addition, the academic advisor at San Jose State University, Dr. Ahmed Banafa, told the “Eqtisad Sky News Arabia” website that based on the recent ruling and previous issues related to the Google Play application store, several changes can be expected that may directly affect the future of the store and the company’s business. .
The first of these changes is related to supporting increased competition, as the field may be opened for alternative application stores on the Android system, which reduces Google’s monopoly on the market, explaining that this will provide developers and users with more diverse options.
Banafa expected that Google would be forced to reduce the percentage of commission it takes from developers, which currently reaches 30 percent in some cases, stressing that such changes may be part of regulatory efforts aimed at imposing greater transparency. He also stated that the company may face pressure to modify its policies to be more transparent and fair to developers, which will put more restrictions on how the App Store is managed.
Banafa added that Google is likely to witness a decline in revenues from the App Store as a result of these changes, which may affect the company’s profits in general if restrictions are imposed on its control over the market, pointing out at the same time that the company may resort to searching for new ways. To compensate for potential losses, such as expanding its business into other areas such as cloud computing or enhancing the advertising model.
Also added to this:
- Improving user experience: Google may focus more on improving the quality of applications and user experience to attract more developers and users, with the aim of maintaining its competitiveness in the market.
- International Expansion: The company may seek to offset any potential losses by expanding into new markets internationally, where regulations may be less restrictive.
Dr. Banafa explained that these changes may significantly affect Google’s business. Although the App Store represents an important source of revenue, as a company it has diversified sources of income, which can help it adapt to these challenges and ensure its continued success.
Short and long term consequences
For his part, technological development expert, Hisham Al-Natour, said in exclusive statements to the “Eqtisad Sky News Arabia” website that after the court ruled that the Google Play Store exercises an illegal monopoly, Google is forced to allow other stores to be present on the Android platform as of November. Next, he pointed out that this decision enables developers to distribute their applications across multiple stores and provide alternative payment systems, which reduces their dependence on Google’s payment system.
Al-Natour spoke of a number of expected effects, as follows:
- Impacts on Google’s revenue: This change is expected to significantly reduce Google’s revenue generated from in-app transaction fees and in-app purchases.
- Increased competition: The Android app market will see increased competition, which will provide wider choices for users and reduce app costs.
- A change in Google’s relationship with developers: This decision may push Google to reconsider its relationship with developers, and provide new incentives to attract them and stay in its store.
- Implications for other companies: This ruling may encourage other companies, such as Apple, to re-evaluate their own store policies and open the way for more competition in the smartphone market, according to Al-Natour’s analysis.
In his interview with the “Eqtisad Sky News Arabia” website, the technological development expert also identified the most prominent potential long-term effects, including:
- Improving user experience: Increased competition may improve the overall user experience, as companies seek to provide better services at more competitive prices.
- New innovation: This change may encourage innovation in application distribution and payment systems.
- Regulatory changes: This ruling may lead to broader regulatory changes in the app market, ensuring that consumers and developers alike are protected.
He stressed that the effects of this decision may seem deep and broad, highlighting the importance of regulatory changes in enhancing competition and protecting consumer rights.
