A federal judge began addressing anticompetitive practices in the app market for smartphones powered by Google’s Android software, following a verdict that declared Google’s Play Store for Android apps an illegal monopoly in a case brought by Epic Games. At the hearing, Epic proposed sweeping changes to Google’s app store, including making all Android apps available to competing stores and distributing rival app stores directly to consumers. Google argued against these proposals, saying they would do more harm than good for consumers and developers of Android apps.
Epic has proposed that these remedies expire after six years, although it is not clear if the judge will allow that lengthy of a period. Google has filed objections to Epic’s proposals, arguing that its network effect advantages existed before it gained monopoly power. Epic also wants Google to stop requiring the Play Store to be automatically installed on Android phones and appoint an oversight committee to ensure compliance with the new order. The judge appeared skeptical of Google’s arguments, saying there is a value-neutral choice in this matter.
Google makes billions of dollars annually from its Play Store for Android apps through a commission system that charges fees on digital transactions. Epic and other app makers have criticized these commissions as abusive and are pushing for changes that would foster more competition and innovation in the app market. The judge did not make a ruling at the hearing but indicated that closing arguments would likely be held in August. Google is trying to minimize the impact on its Android ecosystem amid other antitrust cases targeting its dominant search engine.
Google has made concessions as part of a $700 million settlement in a previous antitrust case with U.S. attorneys general, aimed at increasing competition in the app market. Epic has criticized this settlement as ineffective and is seeking more stringent measures to level the playing field for rival app stores to connect with consumers. The judge has not yet ruled on the case but has indicated that the closing arguments will be heard in August. Google is facing multiple legal challenges to its digital empire, with significant implications for the future of competition in the app market.
