The end of 2023 has not been easy for Google, as the operation of the Play Store was declared an illegal monopoly in the legal battle with Epic Games. As if that weren't enough, the company has received a harsh blow that will change things forever.
Google Will Pay a Hefty Sum and Must Make Changes to Play Store
According to a report from The Verge, Google has conceded defeat in one of the antitrust cases against it. In this case, it involves a legal process that concluded in September of this year, where the company faced the 50 state attorneys general in the United States. They alleged that Google used its power and influence in the market to favor its own platform, Play Store, hinder competition, and inflate the prices of digital products published and distributed on its platform.
Unanimously, the US attorneys general ruled against Google, considering it a monopoly concerning the Play Store. However, this week, the company accepted defeat. According to the information, Google will pay $700 million, which will go towards attorney fees, taxes, and, more importantly, a reimbursement process for all cases where Play Store users were deemed to have overpaid due to the company's monopolistic practices.
What Changes Will Occur in Play Store in the Coming Years?
Additionally, Google has agreed to make significant changes to Play Store that will alter the platform forever. First, Google commits to allowing the installation of third-party applications on Android devices without the obligation to do so through the Play Store for the next 7 years.
Furthermore, for the next 5 years, Google will allow developers to use alternative billing platforms for their applications, meaning they are no longer required to go through the Play Store's payment system. This change and option are now referred to as "User Choice Billing," although it doesn't eliminate the controversial 30% fee.
Over the next 4 years, developers will not be obligated to release their applications on Play Store simultaneously with other platforms. Similarly, they will not be compelled to offer the best price on Google's platform. Simultaneously, during this period, Google cannot force mobile device manufacturers to include Play Store on their devices when they leave the factory. Finally, for the next 6 years, Google cannot prevent application developers from informing users about better prices on their products when accessed from other platforms.
Ultimately, it seems that a transition period towards a new competitive environment has been secured, and that's why changes will occur gradually starting in 2024 and in the following years.
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