SAN FRANCISCO. U.S. District Judge James Donato signaled on Wednesday his intent to enforce substantial changes to the company’s Android app store as a consequence of a jury’s finding that Google operates an illegal monopoly. The ruling, handed down last December, concluded that Google’s Play Store exerted near-total control over the distribution of apps for Android phones and the associated billing systems, a practice that has reportedly harmed millions of consumers and app developers.
During a three-hour hearing in San Francisco, Judge Donato made it clear that his forthcoming order would likely include a mandate requiring the Play Store to offer users the option to download apps from alternative app stores. “We are going to tear the barriers down, that is going to happen,” Donato stated firmly to Google attorney Glenn Pomerantz. “When you have a mountain built out of bad conduct, you are going to have to move that mountain.”
Google has warned that allowing third-party app stores could lead to increased security risks for users, potentially causing “security chaos.” Despite these concerns, Judge Donato emphasized the necessity of a significant overhaul, even if it leads to considerable challenges for Google. The company has estimated that the cost of complying with the potential changes could reach up to $600 million.
The judge is expected to issue an order outlining the required changes within the coming weeks, possibly before Labor Day weekend. These changes are anticipated to serve as a precedent for another major antitrust case against Google, set to begin on September 6 in Washington, D.C. This case targets Google’s dominance in the search engine market, which has also been declared an illegal monopoly.
In the Play Store case, the timeline for Google to implement the required changes remains a key point of contention. While Google has requested 12 to 16 months to ensure a smooth transition, Epic Games, the video game company that filed the antitrust lawsuit, argues that the changes could be implemented in just three months at a cost of approximately $1 million. Judge Donato, however, expressed skepticism over Google’s timeline. “Google is telling me it will take eons for all of this to happen, but I am skeptical about it,” he remarked. “I am dubious that all that brainpower can’t solve these problems in less than 16 months.”
As for the duration of the judge’s order, Donato indicated that he is considering a five-year term, slightly less than the six years proposed by Epic Games, but longer than the one to two years suggested by Google.
Despite the impending shake-up, Judge Donato reassured Google that he would not attempt to micromanage its operations. “The whole point is to grow a garden of competitive app stores,” he explained, highlighting the importance of fostering a more competitive app marketplace.
Gary P Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
