Earlier today, a U.S. district court issued a permanent injunction against Google, which will take effect in the United States on November 1, 2024. The ban stems from a jury verdict that found Google violated antitrust laws (the Sherman Act and the Cartwright Act) and the California Unfair Competition Law in connection with the Google App Store. The ban specifically targets the distribution of Android apps for the next three years and makes the following provisions:
Google may not incentivize third parties to avoid creating competing Android app stores.
Google cannot force developers to publish apps only on the Google Play Store.
Google cannot prevent developers from offering different functionality in apps on other stores.
Google cannot prevent device manufacturers from pre-installing competing app stores.
Allow developers to use payment systems other than Google Play billing.
Allow developers to introduce their applications to users on other platforms.
Users can download apps from other stores, but Google keeps the revenue.
Google can only enforce reasonable security and content standards on third-party app stores.
A technical committee will be set up to oversee the technical aspects of the ban, with the court retaining the final say.
Following the injunction, Google has confirmed its intention to appeal the court's decision to suspend the implementation of the relief measures. Google believes that implementing these changes will jeopardize consumer privacy and security, hinder developers' ability to promote their applications, and ultimately reduce competition in the device market. Google’s appeal will focus on the following points:
Apple and Google compete directly for consumers: The ruling is based on the mistaken conclusion that Android is a market in itself. By contrast, Apple's decision (upheld on appeal) correctly found that Android and iOS competed in the same market. This is obvious to anyone who has purchased a smartphone. Walk into a store that sells smartphones, and you'll see a variety of options lined up side by side -- Android phones from Samsung, Motorola and others competing against Apple's iPhones. People choose among these phones based on price, quality and security.
Google and Apple compete directly for app developers: This decision ignores what every developer in the world knows - they must prioritize investing in iPhone and Android development. Developers' resources are limited, and they must decide how much time and money to invest in developing and updating apps for each platform. Like any business, Google wants developers to bring the best features to Android and release on Android first. That's why we develop tools, implement training programs, and invest in making Android development as easy as possible. Apple certainly does the same thing - racing to convince developers to prioritize iOS.
Android is open, and Google Play is not the only way to get apps: This decision fails to take into account that Android is an open platform, and developers have always had many choices in how to publish their apps. In fact, most Android devices come with two or more app stores pre-installed out of the box. Developers have other options, such as making apps available to users directly from their own websites. For example, Epic Games makes its popular Fortnite app available to Android users through the Samsung Galaxy App Store, sideloading, and the Epic Games App Store, while Fortnite is not released through Google Play. These are options that developers have never offered to U.S. users on the iPhone.
The court's decision and Google's appeal could have a significant impact on future Android app distribution and the overall mobile app market.