Another blow from the antitrust big stick! US judge to order Google to open its app store

According to the financial news app Zhitong Finance, a federal judge in California stated that he will order Google, a subsidiary of Alphabet (GOOGL.US), to open its app store in the coming weeks and criticized the tech giant for not accepting the jury's ruling on its monopoly over Android app distribution and billing.

In December last year, the jury sided with the popular video game "Fortnite" developer Epic Games, finding that Google had illegally abused its power over Android applications. Android applications brought in $14.66 billion in revenue for the tech company in 2020. US District Judge James Donato in San Francisco is deciding what policy changes Google must make to comply with federal antitrust laws.

Donato stated during a hearing on Wednesday that he intends to make a ruling in the coming weeks and is considering remedies applicable outside the United States, as the jury found anti-competitive behavior exists globally.

The judge criticized Google for rejecting some of the remedies proposed by Epic Games.

"Build a Fence"

Donato said, "If you build a fence that keeps everyone out, when you finally open the gate, there will be a stampede. You shouldn't have built the fence in the first place."

Google had estimated that it might take 12 to 16 months to implement the proposed changes, but Donato expressed a desire for a faster timeline.

He said, "Google can do better."

Donato's ruling will be the first in the United States attempting to address Google's dominant position. Previously, Google faced competition cases and fines totaling over €8.25 billion (US$9.1 billion) in Europe. Litigation regarding Google Play is still pending, as the platform charges software developers up to 30% commission, with these developers often having "virtually no other platforms to promote their apps."

Antitrust Review

In the December ruling last year, the jury found that Google, which has been under antitrust scrutiny for the past decade, engaged in illegal monopolistic practices worldwide.

Last week, a federal court judge ruled that Google illegally monopolized the online search and advertising market. The US Department of Justice and some state attorneys general brought the lawsuit and are considering seeking to break up Google after the judgment.

Epic had requested the implementation of certain remedies (such as allowing third-party app stores access to the millions of apps in the Google Play Store) for six years. Google argued that one to two years should be enough for apps to gain attention on their own, after which Google should no longer be forced to "support its competitors."

Donato stated that his ruling could last at least three years. He also plans to appoint a three-person technical committee to oversee whether the company is complying with his orders.

The judge repeatedly assured Google's lawyers that he has no intention of micromanaging Google's business.

Donato said, "I have no intention of issuing an extremely detailed decree that will ultimately harm competition." Epic has launched a long-standing antitrust lawsuit against Apple (AAPL.US) App Store