Judge plans Google Play store overhaul after monopoly ruling, looks at alternative app stores

Hot potato: In general, there’s been a trend toward antitrust actions against big tech companies, including Meta, Amazon, and Apple. Google found itself in the spotlight on Wednesday when it endured a three-hour hearing on the fate of its Play Store. The judge has been vocal in his support for a more competitive environment for app stores, saying that while he won’t micromanage Google’s actions, a significant restructuring is inevitable.

The fallout from last December’s jury decision that the Google Play Store operated as an illegal monopoly is still being felt by Mountain View residents.

U.S. District Judge James Donato is expected to order significant changes to Google’s store aimed at ending its monopoly status. This could include requiring Google to allow alternative app stores on Android devices, giving consumers more choice.

The jury verdict, delivered after a four-week trial, found that Google has near-exclusive control over app distribution and billing systems on Android phones, which generates significant revenue for the company.

It was a remarkable finding, to say the least, especially since it could set a precedent for similar antitrust cases against Google. The ruling is part of a broader series of antitrust lawsuits against Google seeking to address its monopolistic practices. The legal scrutiny is far from over, as lawsuits over Google’s search and advertising technology operations approach. Meanwhile, the Justice Department is sharpening its knives, potentially calling for a breakup of the company, which could involve getting rid of key components like the Android operating system, the Chrome browser or the AdWords platform.

The current headache is Judge Donato’s intentions for the Google Play Store. During a three-hour hearing Wednesday, he stressed the need for a major overhaul, even if it comes at a significant cost to Google — potentially as much as $600 million, according to the company.

“We’re going to tear down the barriers, that’s what’s going to happen,” Donato told Google attorney Glenn Pomerantz. “When you have a mountain built on bad behavior, you’re going to have to move that mountain.”

The judge, who hopes to be able to issue an order outlining the Play Store changes in the next few weeks, is also considering how long Google should have to implement the changes he has ordered. Google has requested 12 to 16 months, while plaintiff Epic Games has argued it could be done in about three months. Judge Donato is skeptical of Google’s timeline and seems inclined to require a quicker transition.

There is also debate over how long the changes should last, with Epic Games suggesting a six-year period, but a judge is considering a five-year period, while Google prefers a shorter period of one to two years.

The ruling to overhaul Google’s Android app store is expected to have a significant impact on both app developers and consumers, allowing alternative app stores on Android devices. It would give consumers more choice and developers additional platforms to distribute their apps, reducing their dependence on Google Play Store rules and fees.

But as Google noted, the introduction of third-party app stores could lead to an increased risk of downloading malware, as those stores may not have the same security measures as Google Play. It warned of possible “security chaos” caused by malware — an argument that didn’t impress Judge Donato.

Google plans to appeal the various rulings against it, meaning any significant changes to its business practices could be delayed for months or even years. But the ongoing legal battles could create uncertainty and affect Google’s strategic decisions.