In a significant development in the Epic v. Google case, Judge James Donato has made it abundantly clear that Google will be compelled to make substantial changes to its app store practices. Following an eight-month wait since a federal jury unanimously determined that Google’s Android app store operates as an illegal monopoly, Donato held a final hearing on the remedies to be imposed. Throughout the proceedings, he dismissed any arguments suggesting that Google should not be required to open its store to competitors, emphasizing that the existing monopolistic environment must be dismantled. “We’re going to tear the barriers down, it’s just the way it’s going to happen,” he stated, underscoring the necessity for change.
Key Developments in the Hearing
As the hearing unfolded, it became evident that both parties acknowledged the feasibility of opening the Google Play Store to rival stores. However, they engaged in a contentious debate regarding the timeline and costs associated with this transition. A particularly contentious point was whether Google could mandate that every app from competing stores undergo human review before being allowed into the Play Store. Google’s lead attorney, Glenn Pomerantz, raised concerns about the implications of such a requirement, citing extreme examples to illustrate potential risks.
In contrast, Epic's lead attorney, Gary Bornstein, argued that requiring Google to review every app from third-party stores would only reinforce the gatekeeping power that Google has historically abused. Judge Donato appeared to align with Epic’s perspective, indicating his intention to prohibit any discriminatory practices by Google towards rival app stores, including the imposition of human review processes.
During the hearing, Pomerantz even suggested that the direction proposed by Judge Donato could be likened to Soviet-era central planning, arguing against the imposition of requirements that would force Google to accommodate rival app stores. However, Donato clarified that he does not intend to micromanage Google’s operations. Instead, he proposed the establishment of a “technical compliance and monitoring committee,” comprising representatives from both Epic and Google, along with a mutually agreed-upon third party. This committee would oversee the technical aspects of compliance and report back to the court every 90 days.
As the case approaches its conclusion, Judge Donato's remarks reflect a commitment to dismantling the monopolistic structures that have long governed the app distribution landscape, signaling a transformative shift in the way app stores may operate in the future. With a final ruling expected in just over two weeks, the tech industry is poised for a potential reconfiguration of its competitive dynamics.
