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A hot potato: In general, there has been a trend of antitrust actions against major tech companies, including Meta, Amazon, and Apple. Wednesday was Google's turn in the hot seat when it endured a three-hour hearing on the fate of its Play Store. The judge is determined to foster a more competitive environment for app stores and says that while he will not micromanage Google's operations, a significant restructuring is imminent.
The fallout from a jury's decision last December that the Google Play Store operates as an illegal monopoly continues for Mountain View.
US District Judge James Donato is expected to order substantial changes to Google's store, aiming to dismantle its monopoly status. This may include requiring Google to allow alternative app stores on Android devices, offering consumers more choices.
The jury's verdict, reached after a four-week trial, found that Google has nearly exclusive control over app distribution and billing systems on Android phones, which generates significant revenue for the company.
It was a noteworthy finding to say the least, especially as it could set a precedent for similar antitrust proceedings against Google. The ruling is part of a broader series of antitrust lawsuits against Google, aimed at addressing its monopolistic practices. The legal scrutiny is far from over, with upcoming trials concerning Google's search and advertising technology operations. Meanwhile, the Department of Justice is sharpening its knives, potentially calling for a breakup of the company that could involve divesting key components such as the Android operating system, the Chrome browser, or the AdWords platform.
The current headache concerns Judge Donato's intentions for Google Play Store. In a three-hour hearing on Wednesday, he emphasized the necessity for a major overhaul, even if it incurs significant costs for Google – potentially as much as $600 million, according to the company.
"We are going to tear the barriers down, that is going to happen," Donato told Google attorney Glenn Pomerantz. "When you have a mountain built out of bad conduct, you are going to have to move that mountain."
The judge, who is hopeful he will be able to issue an order outlining the framework for the changes to the Play Store within the next few weeks, is also considering how long Google should be given to implement the changes he orders. Google has requested 12 to 16 months, whereas Epic Games, the plaintiff, argues 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 a debate over how long the imposed changes should last. Epic Games suggests a six-year period, but the judge is contemplating a five-year term, while Google prefers a shorter duration of one to two years.
The ruling to overhaul Google's Android app store is expected to have significant impacts on both app developers and consumers by allowing alternative app stores on Android devices. That would give consumers more choice while providing developers with extra platforms to distribute their apps, reducing their reliance on Google Play Store's policies and fees.
But as Google pointed out, the introduction of third-party app stores could lead to increased risks of downloading malicious software, as these stores might not have the same security measures as Google Play. It warned of possible "security chaos" from malicious software – an argument that left Judge Donato unimpressed.
Google plans to appeal the various rulings against it, which means that any significant changes to its business practices might be delayed for months or even years. However, the ongoing legal battles could create uncertainty and impact Google's strategic decisions.