A PYMNTS Company

Federal Judge Grants Google a Stay on Android App Store Overhaul

 |  October 20, 2024

A federal judge in San Francisco has postponed a court order that would force Google to introduce more competition to its Android app store. The delay will remain in place until an appeals court can rule on the legal complexities of a jury verdict branding Google as an illegal monopolist, according to an AP News report.

The decision, made on Friday by U.S. District Judge James Donato, follows his earlier ruling that would have required Google to make significant changes to its Play Store starting November 1. Those changes aimed to open the platform to rivals, including giving competitors access to the more than 2 million apps available on the Android Play Store.

Google, however, sought to delay Donato’s order while the Ninth Circuit Court of Appeals reviews the case, which stemmed from a December 2023 verdict. The jury had found that Google’s Play Store was monopolistic, allegedly stifling innovation and inflating consumer costs. In response to Friday’s delay, Google expressed relief, stating that the temporary pause would allow the company to further argue its case for protecting the Play Store’s safety and user experience, per an AP News update.

During Friday’s hearing, Judge Donato dismissed Google’s arguments that it might succeed in overturning the antitrust verdict, citing extensive evidence of Google’s anti-competitive behavior. “The verdict in this case was amply supported by a mountain of evidence,” Donato remarked. Despite his skepticism, he conceded that the appeals court should be given time to assess the matter.

Google’s appeal is rooted in its concerns about the complexity of implementing the required changes. The tech giant has characterized the shift as a “Herculean task” that poses potential risks to the security of the Android ecosystem, claiming the overhaul could lead to substantial costs. However, Judge Donato largely dismissed these concerns during the proceedings.

Read more: Google to Challenge Antitrust Ruling; CEO Sundar Pichai Signals Prolonged Legal Battle

As part of the mandated changes, Google would have had to allow rival app stores and alternative distribution methods for Android apps, a move that could drastically alter its current control over the Play Store. According to Donato, the appeals court could potentially extend the delay even further, though that will be left for the Ninth Circuit to decide.

The timeline for the appeals court’s decision is uncertain and could stretch out for over a year, given the complexity of the case. A similar situation occurred in 2021 when the Ninth Circuit delayed a ruling in another antitrust case brought by video game company Epic Games, this time against Apple. Although Apple managed to avoid being labeled an illegal monopolist, it was ordered to allow links to alternative payment systems within apps—a provision Apple fought to delay. That delay preserved Apple’s exclusive control of its payment system, which earns the company commissions of 15 to 30 percent on certain app transactions.

In Google’s case, the company insists that the remedies proposed by Donato’s ruling could jeopardize the Play Store’s integrity. “These remedies threaten Google Play’s ability to provide a safe and secure experience,” the company said in a statement, adding that it looks forward to defending its position for the benefit of millions of users, developers, and partners across the U.S.

Source: AP News