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Google Responds to Epic’s Injunction Request
Google has recently appealed to a federal court to dismiss Epic Games’ plea for an injunction that would diminish Google’s dominance in the Android app distribution and in-app payment markets. In a filing made in the US District Court for the Northern District of California, Google argued against Epic’s request, claiming that instead of addressing alleged legal violations, Epic is essentially seeking to establish a new regulatory framework that would significantly impact a vast ecosystem utilized by billions of consumers, millions of app developers, as well as the operations of numerous OEMs and carriers worldwide.
Epic’s Legal Victory Against Google
Last December, Epic Games secured a jury verdict deeming Google guilty of engaging in anticompetitive practices to uphold monopolies in the Android app distribution and in-app billing sectors. The jury unanimously sided with Epic on all counts presented during the trial. Following this legal triumph, Epic put forth a proposed injunction last month to further solidify its stance against Google’s alleged anticompetitive behavior.
Google’s Counterarguments
In response to Epic’s injunction proposal, Google raised several objections. Google contested provisions within the proposed injunction that would oblige Google to distribute other app stores, offer its complete app catalog to all other app stores, restrict negotiations with OEMs for non-exclusive placement, and impose constraints on deals with developers for unique content.
Google also underscored that Epic’s injunction aims to tip the scales in its favor to the detriment of other developers, OEMs, consumers, and Android users. According to Google, Epic’s proposal could limit choices for developers and OEMs, curb competition, while potentially compromising the security and privacy of Android users.
Google’s Settlement with States
Google contends that Epic’s injunction request is unwarranted in light of the $700 million settlement that Google reached with various US states following the legal dispute. This settlement, which received backing from all 50 states, the District of Columbia, and two territories, encompasses remedies that address the anticompetitive concerns raised by Epic during the trial.
Google emphasized that the settlement promotes competition among app stores, facilitates competing app stores to engage in preload agreements with OEMs, simplifies direct installation, and affords developers the choice among different billing systems. Conversely, Google highlighted that Epic’s proposed injunction might disadvantage other stakeholders in the ecosystem, depriving them of choices and diminishing competition.
Impact of the Settlement
Per the agreement, Google users will have the option to pay through alternative in-app billing systems rather than Google Play Billing for at least five years. Developers will be permitted to steer consumers towards non-Google billing systems by offering lower prices within their apps for a similar period. Additionally, the deal prohibits Google from enforcing exclusivity contracts with OEMs or mandating the preloading of the Play Store on devices or home screens for at least five years.
The settlement also stipulates that Google must allow third-party apps on Android phones outside the Google Play Store for a minimum of seven years. Moreover, Google is required to revise and reduce warnings on Android devices when users attempt to download third-party apps from sources other than the Play Store for a specified duration. Lastly, Google must sustain support for third-party app stores on the Android system for a four-year period.
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