Google is pushing back against Epic Games’ proposed remedies following a court ruling that found Google had engaged in anticompetitive practices on its Play Store. Epic Games had issued a list of demands, including access to the Play Store catalog for six years, the ability to distribute its own app store on Google Play with no fees, and the elimination of agreements and penalties that favored the Play Store. However, Google has referred to these demands as overreaching and unnecessary.
The court’s decision against Google was significant, as it marked a historic ruling in favor of Epic Games. This was in contrast to a similar antitrust case between Epic Games and Apple, which had not been tried by a jury. In the Epic-Apple lawsuit, the court determined that while Apple was not a monopolist, developers should have the ability to direct their customers to alternative payment methods outside of the App Store.
Although the jury in Google’s case determined that the company had abused its market power, it is up to Judge James Donato to decide the next steps. The recent filing from both Google and Epic Games will help inform the judge’s decision on how to address Google’s anticompetitive practices.
Epic Games’ proposed injunction outlined its demands for Google, which include allowing users to download apps from any app store or the web according to their preference. Epic Games also wants to prevent Google from blocking or coercing OEMs and carriers to favor Google Play. Additionally, it aims to eliminate additional fees for bypassing the Play Store and wants developers to have the freedom to inform users about alternative payment methods and potential savings. These demands aim to address what Epic Games believes to be anticompetitive practices by Google.
However, Google disagrees with Epic Games’ proposed changes. The company argues that implementing these changes would jeopardize user security and privacy by removing its ability to implement trust and safety measures regarding third-party app stores. Google also claims that it would be required to disclose users’ installed apps to all third-party app stores without their consent, potentially exposing sensitive information. Furthermore, Google highlights that Epic’s demands would remove safeguards around sideloading apps and prevent Google from working with developers to provide exclusive content through Play Store apps, which it believes is an important opportunity for developers.
To counter Epic Games’ proposed remedies, Google points out that it has already settled with state attorneys general to no longer sign wide-ranging exclusivity agreements with developers. Google argues that Epic’s proposal would impede its ability to work with developers and provide exclusive content, reducing competition. The company also notes that the state AG settlement allows any app store to compete for placement on Android devices, whereas Epic’s proposal would exclude Google from the process, potentially impacting OEM margins.
The judge’s upcoming decision on the remedy in this case will have significant implications for app stores deemed monopolists and how they must accommodate more competition. While Epic Games lost its battle against Apple, the Justice Department’s case against Apple and the lawsuit against Google over its alleged search monopoly are still ongoing. The outcomes of these cases will determine the extent to which the power of tech giants remains unchecked, highlighting the lack of legislation in the U.S. to regulate tech monopolies.
