Google Urges US Judge to Reject Epic Games' Proposed Changes to Play Store

In a recent development, Google has urged a US judge to reject significant changes to its Play app store, as demanded by Epic Games. Epic, the maker of Fortnite and backed by Tencent and Walt Disney, had previously won an antitrust case against Google in December 2023. Epic has proposed that the Play Store should allow third-party app stores and limit Google's deals with device makers. However, Google argues that such changes would put it at a disadvantage. Google argues that its proposed remedies in a related Play store settlement with states and consumers address Epic's concerns. A hearing on the proposed injunction is set for May 23. In December 2021, Google agreed to pay $700M to resolve the states' case, among other reforms, including introducing alternative billing options for in-app purchases.

Key Takeaways

• Google opposes Epic Games' proposed changes to app store Play.
• Epic wants Play Store to allow competing third-party app stores for six years.
• Google argues Epic's proposal would hinder its ability to compete.
• In Dec 2023, Epic won an antitrust case against Google, found Play store as an illegal monopoly.
• Google's proposed remedies address alleged anticompetitive conduct, include alternative billing options.
• A hearing on the proposed injunction is set for May 23.
• Google agreed to pay $700M in Dec 2021 to resolve states' case, include reforms for alternative billing options.

Analysis

Google's opposition to Epic Games' proposed changes to the Play app store indicates a contentious battle over app distribution and in-app purchases. Epic's victory in the antitrust case has put Google on the defensive, potentially impacting its relationship with device makers and app developers. If Epic's proposed changes are implemented, Google could lose control over the Play Store, affecting its revenue and market position. This conflict could lead to tighter regulations on app stores and in-app purchases, affecting other tech giants like Apple and Amazon. Google's $700M settlement in 2021 indicates a growing trend of regulatory scrutiny and potential financial repercussions for tech companies.

Did You Know?

• Third-party app stores: In the context of this article, third-party app stores refer to alternative marketplaces for mobile applications that are not owned or operated by the device manufacturer or mobile operating system provider. In this case, Epic Games is proposing that Google's Play Store should allow competing third-party app stores, which would allow developers to distribute their apps outside of the Play Store.
• Antitrust case: An antitrust case is a legal action taken against a company or organization for violating antitrust laws, which are designed to promote competition and prevent monopolies. In this case, Epic Games won an antitrust case against Google in December 2023, arguing that the Play Store operates as an illegal monopoly.
• Alternative billing options: Alternative billing options refer to payment methods other than those imposed by the platform or app store. Google has agreed to introduce alternative billing options for in-app purchases in a settlement with state attorneys general in December 2021. This means that developers will be able to offer their users alternative payment methods in addition to the one required by the platform or app store, potentially reducing transaction fees and allowing for more price competition.