Google faces potential order from US judge calling for reforms in Epic Games suit – report

A U.S. judge said he intends to issue an order that would make Alphabet’s (NASDAQ:GOOG) (NASDAQ:GOOGL) unit Google give Android users more ways to download apps, but would not micromanage the company’s business, Reuters reported.

U.S. District Judge James Donato’s comments in San Francisco follows a jury’s decision last year for Fortnite game maker Epic Games. Donato heard from technology experts and lawyers for Epic and Google about proposed reforms in the case, the report added.

The lawsuit by Epic — in which Tencent (OTCPK:TCEHY) (OTCPK:TCTZF) and Walt Disney (DIS) hold a stake — alleged that Google monopolized how users access apps on Android devices and how they pay for in-app transactions. In December 2023, a jury found that Google had monopolized the Android app distribution and payments market by charging app developers high fees of up to 30% and striking side deals with rivals to fend off competition.

Donato was not pleased with Google’s protests about the costs and difficulty in implementing several proposals from Epic’s and indicated he would issue an order which would increase users’ and developers’ flexibility to download and distribute apps outside the Play store, the report noted.

“You’re going to end up paying something to make the world right after having been found to be a monopolist, Donato said, as per the report.

In April, Epic urged Donato that Google’s Play Store should allow the distribution of competing third-party app stores for six years and also limit Google’s ability to sign deals with device makers to curb the preloading of rival app stores. Google reportedly said that it would appeal the antitrust jury verdict, and it can separately challenge any reforms ordered by Donato.

Donato said on Wednesday that he will rule in the coming weeks and establish a three-person compliance and technical panel to implement and monitor the injunction.

Google’s lawyer Glenn Pomerantz told Donato that the company should not be forced to distribute its competitors’ app stores. “Competition will be worse if you impose a duty that you have to deal with your competitor,” Pomerantz added.

Separately, last week, Google lost its antitrust suit over search. U.S. District Judge Amit Mehta noted that Google violated Section 2 of the Sherman Act “by maintaining its monopoly in two product markets in the United States—general search services and general text advertising—through its exclusive distribution agreements.”