Supreme Court forces Google to overhaul its Play Store as competition rises

In the United States, on October 7, 2024, the U.S. Supreme Court declined to grant Google a stay on a year-old order that demanded significant modifications of its Android app store, known as the Play Store. This legal decision follows a jury's verdict that identified Google’s management of the Play Store as an illegal monopoly. The ruling means Google must start implementing changes designed to level the competitive playing field regarding app distribution, notably allowing competitors to access its extensive inventory of Android apps. This decision comes as part of ongoing scrutiny over digital monopolies in the technology sector. U.S. District Judge James Donato's ruling in October 2023 mandated that Google would be required to permit rival apps to be available for download through its Play Store. Google has expressed concerns that the modifications could expose over 100 million U.S. users to security risks posed by potentially harmful or deceptive applications. The company has argued that this ruling turns it into a 'supplier and distributor' for its competitors, compromising its business model and user security. Previously, Google had sought to delay compliance with the order while appealing the jury’s verdict, which found that the Play Store practices had allowed Google to earn substantial profits through excessive fees on in-app transactions. These fees, typically ranging from 15% to 30%, were at the center of Epic Games' 2020 antitrust lawsuit against Google. However, attempts by Google to avoid the order were rejected by the Ninth Circuit Court of Appeals a couple of months prior, leaving the company without further legal recourse. As a result of the Supreme Court's recent decision, Google will have to start its compliance efforts by October 22, 2024. Experts suggest that even though the Play Store change could negatively impact Google's revenues from in-app purchases, the majority of its profits stem from its dominant advertising business, implying that while there will be adjustments made, the company's overall profit structure may remain largely intact. The controversy surrounding digital monopolies continues, with rival companies and consumer advocates urging for reforms across digital platforms to promote competition and curb abusive practices in the industry.