After Google monopoly verdict, Federal Judge signals major overhaul of Play Store

A federal judge on Wednesday signaled plans to enforce major changes to Google’s Android app store, following a jury’s determination that the tech giant has been operating an illegal monopoly that harmed millions of consumers and app developers.

During a three-hour hearing in San Francisco, U.S. District Judge James Donato indicated that the forthcoming restructuring could include a mandate requiring Google’s Play Store to offer users the option to download alternative app stores, a move designed to dismantle the company’s dominance in app distribution.

Judge Donato has been considering penalties for Google since last December, when a jury concluded after a four-week trial that the Play Store constitutes a monopoly. The jury’s decision was based on Google’s near-exclusive control over the distribution of apps for Android phones and the associated billing systems, a setup that generates billions of dollars in annual revenue for the company.

In response to the judge’s potential requirements, Google has raised concerns that opening up to third-party app stores could expose consumers’ devices to malicious software, leading to what it described as “security chaos.”

However, Donato was resolute in his stance, emphasizing the necessity of a significant overhaul of the Play Store, even if it causes substantial costs and operational challenges for Google. The company has estimated the cost of compliance could reach $600 million, depending on the scope of the judge’s final order.

“We are going to tear the barriers down, that is going to happen,” Donato told Google’s attorney, Glenn Pomerantz. “When you have a mountain built out of bad conduct, you are going to have to move that mountain.”

Donato indicated he hopes to issue an order outlining the changes within the next few weeks, potentially before the Labor Day weekend.

Google’s approach during the penalty phase of the Play Store case may offer a preview of its strategy in a separate, larger antitrust case, in which another judge declared the company’s search engine to be an illegal monopoly. Remedy hearings for that case are set to begin on Sept. 6 in Washington, D.C.

In the Play Store case, Donato is still deliberating on how much time to grant Google to implement the changes and how long the imposed restrictions should remain in effect.

Google has requested 12 to 16 months to make the necessary adjustments, arguing that this timeframe is needed to ensure a smooth transition and avoid disruptions to Android smartphones. Meanwhile, Epic Games, the video game developer that filed the antitrust lawsuit, contends that Google could make the changes in about three months at a cost of roughly $1 million.

Although he has not disclosed a specific timeline, Donato suggested he is unlikely to give Google the extended period it seeks.

“Google is telling me it will take eons for all of this to happen, but I am skeptical about it,” the judge remarked. “I am dubious that all that brainpower can’t solve these problems in less than 16 months.”

Epic Games has proposed that the judge’s order remain in effect for six years, but Donato signaled that he might consider a shorter duration, possibly five years. Google, on the other hand, prefers that the order expire after one or two years.

Despite preparing Google for a significant shake-up, Donato assured the company that he does not intend to micromanage its operations.

“The whole point is to grow a garden of competitive app stores,” the judge said.

With inputs from AP