Google needs to revamp its app store to give more options for Android users to transact through third-party apps directly. The decision comes against the background of the precedent set by the war between Epic Games – the creator of Fortnite – and Apple.
KEY FACTS
- Federal Judge Jaime Donato ruled that Google must open its app store to competitors and give Android users more choice when downloading them.
- In practice, this means that Google has to change the way it manages Google Play in the next three years.
- The company cannot force developers to use Google Play’s billing system while allowing them to notify their users of alternative payment methods.
- The court ordered Epic Games and Google to establish a three-person technical committee to implement and monitor the court order.
- The order will take effect from November 1.
- Following the decision, Alphabet shares closed down 2.5%, currently trading at $164.39.
- In response to the decision, Google said it would file an appeal, arguing that the changes would “undermine Android’s ability to compete with Apple’s iOS.”
- Epic Games described the decision as “big news”. The creator of Fortnite plans to launch its own store on Google Play in 2025.
IMPORTANT QUOTE
“Ultimately, while these changes likely satisfy Epic Games’ requirements, they will have a number of unintended consequences that will harm American consumers, developers, and device manufacturers,” Google said.
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KEY STORY
US-based developer Epic Games’ Fortnite is a game backed by the world’s largest game studio, the Chinese company Tencent. The game launched in 2017 and became an instant hit, attracting the interest of millions of players across the globe.
However, in August 2020, Apple and Google removed Fortnite from their app stores because Epic Games violated their policy with its Epic Games Store payment service, which allows in-game purchases. The saga sparked a series of lawsuits.
However, under the Digital Markets Act that came into effect in March, Apple and Google had to allow Epic Games to operate freely. In August, Fortnite became available again for iPhone users in the EU.
