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Tuesday, 12/12/2023 2:30:42 PM

Tuesday, December 12, 2023 2:30:42 PM

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Google Play app store ruled an illegal monopoly; why Apple’s App Store is different
Tuesday, December 12, 2023 12:11 pm

Google Play, Alphabet-subsidiary Google’s app store for Android, has been ruled an illegal monopoly. The jury in the Epic v. Google case delivered its verdict, finding that the Google Play app store and Google Play Billing service constitute an illegal monopoly.

The same Epic Games mostly lost its fight against Apple two years ago. See: Apple wins appeal in Epic Games antitrust challenge, App Store policies upheld by court – April 24, 2023

Sean Hollister for The Verge:

Epic v. Google turned out to be a very different case. It hinged on secret revenue sharing deals between Google, smartphone makers, and big game developers, ones that Google execs internally believed were designed to keep rival app stores down. It showed that Google was running scared of Epic specifically. And it was all decided by a jury, unlike the Apple ruling.

Mind you, we don’t know what Epic has won quite yet — that’s up to Judge James Donato, who’ll decide what the appropriate remedies might be. Epic never sued for monetary damages; it wants the court to tell Google that every app developer has total freedom to introduce its own app stores and its own billing systems on Android, and we don’t yet know how or even whether the judge might grant those wishes. Both parties will meet with Judge Donato in the second week of January to discuss potential remedies.

MacDailyNews Note: Google’s statement to the media following the verdict: “We plan to challenge the verdict. Android and Google Play provide more choice and openness than any other major mobile platform. The trial made clear that we compete fiercely with Apple and its App Store, as well as app stores on Android devices and gaming consoles. We will continue to defend the Android business model and remain deeply committed to our users, partners, and the broader Android ecosystem.”

Mark Gurman and Davey Alba for Bloomberg News:

There were significant differences between the two trials. During the current case, Epic highlighted agreements Google reached with top game developers, including Activision Blizzard Inc. and Nintendo Co., for smaller fees. Every developer should now demand one of those deals, Sweeney said.

“Revenue sharing deals among Google, smartphone makers and game developers came to light during the trial,” Justin Patterson and other analysts at KeyBanc Capital Markets wrote in a note to clients. “We believe this was a key difference between the cases that contributed to Apple’s victory and Google’s loss.”

In Apple’s App Store, the same 30% take rate was applied evenly, while Google was attempting to steer traffic away from rival app stores on Android, analysts at Jefferies wrote in a note.

MacDailyNews Take: Just like everything else, Google couldn’t even copy Apple’s innovations correctly. Google’s knockoff of Apple’s App Store is an illegal monopoly. Apple’s is not.

Again:

It’s Apple’s App Store. Of course they have a right to charge commissions.

Apple’s App Store isn’t a charity and it’s not free to operate. – MacDailyNews, November 14, 2022

How much did it cost developers to have their apps burned onto CDs, boxed, shipped, displayed on store shelves prior to Apple remaking the world for the better for umpteenth time? Apple incurs costs to store, review, organize, surface, and distribute apps to over one billion users. — MacDailyNews, June 10, 2022

That said, as we wrote last year:

Those who want safety, security, and privacy will stick to Apple’s App Store, but a single point of control is always a danger, especially when it comes to capricious censorship (see: pre-Musk Twitter, Apple’s App Store in China, etc.).

iPhone and iPad users must, like Mac users, have the ability to install third-party apps; even if they never do, for it will keep Apple honest. The ability to ban an app loses all power when it’s simply available in another App Store.

These moves, including removing the mandate to use WebKit, Apple’s Safari browsing engine, in third-party browsers, will greatly reduce, if not eliminate, the threat of anti-trust actions against Apple for the foreseeable future.

Also, expect Gatekeeper to come to iOS and iPadOS from macOS.

Yes, Apple’s App Store revenue will take a hit, but there are new products for new markets on deck (AR/VR headsets, AR glasses, Apple Car, etc.) that will more than make up for any loss of App Store exclusivity.


Related

Epic Games sues Google over removal of ‘Fortnite’ from Google Play Store
Friday, August 14, 2020
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36 U.S. states sue Alphabet for ‘unlawfully’ maintaining Google Play Store monopoly on Android phones
Thursday, July 8, 2021
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Apple CEO Tim Cook to take the stand at Epic Games v. Apple trial
Friday, May 21, 2021
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https://macdailynews.com/2023/12/12/google-play-app-store-ruled-an-illegal-monopoly-why-apples-app-store-is-different/
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