Epic Games trial orders Google to open Android app store.

• On Monday, a U.S. judge issued a permanent injunction, compelling Google to provide Android phone users with alternatives to its Google Play store for downloading apps.
• The most significant outcome from Epic Games' antitrust lawsuit against Google, which began in 2020, was the ruling from Judge James Donato in court in California.

On Monday, a U.S. judge issued a permanent injunction, compelling to provide alternatives to its Google Play store for downloading apps on Android phones.

Alphabet stock dropped over 2% on Monday after news broke that Google would not be paying fees or sharing revenue with companies that chose not to compete with its app store.

Google lost to Epic Games last year, and Monday's filing outlines the necessary changes for Google.

The most significant outcome of Epic Games' antitrust lawsuit against Google, which began in 2020, is the ruling from Judge James Donato in California. Epic Games, the creator of Fortnite, accused Google of anti-competitive practices, including paying hardware companies and Android phone makers not to develop competing app stores.

The new restrictions on Google Play could enable developers to retain more revenue by circumventing Google's guidelines or fees, potentially giving them a larger market share, as both Google and Apple's app stores typically take between 15% and 30% of total sales for high-grossing apps. In 2023, consumers spent $124 billion on apps, according to Sensor Tower.

For three years, starting in November, Google will be unable to.

• Pay companies to launch apps exclusively or first on Google Play
• Pay companies so they don't compete with Google Play
• Pay companies to preinstall Google Play on new devices
• App makers must use Google Play Billing or be prohibited from informing their users about cheaper online goods on their website. Google Play charges between 15% and 30% of in-app purchases as a fee from large app makers.
• Google will allow competing Android app stores to access its catalog of apps.
• Google will include third-party Android app stores on its Google Play app store.

According to the filing, a three-person committee consisting of Epic and Google will review technical issues related to Google's compliance.

Google lost its trial against Epic Games, while Apple won its trial against Epic Games.

Epic Games, known for publishing popular games such as "Fortnite," generates revenue through in-app purchases of character costumes and other "skins." In 2020, the company challenged Google and Apple's control over mobile app distribution by offering cheaper in-game currency purchases, which violated app store rules and led to lawsuits.

Epic Games mostly lost in a similar suit against Apple and its control of the App Store. Google's trial was decided by a jury. Apple's trial was decided by a judge.

In the Google trial, Epic Games examined whether Google monopolized the app store market through agreements with handset manufacturers and whether it intimidated users from utilizing Android's sideloading feature, which enables Android users to download apps from the internet, through security alerts.

According to Epic Games CEO Tim Sweeney, Google's corporate culture played a role in Epic's victory, as Google officials frequently documented their business practices in emails and communications that were revealed during the trial.

Google and Epic Games representatives didn't immediately return requests for comment.