In a span of just two days, Alphabet's Google has faced significant legal setbacks, including a court mandate to open its Play Store to competitors and a looming possibility of a judicial order to break up parts of the company to curb its dominance in online search. Here's an overview of the ongoing U.S. antitrust cases that are putting Google on the defensive and could significantly impact its future.
Changes to Android Play StoreOn Monday, U.S. District Judge James Donato in San Francisco ordered Google to make substantial changes to its Android app operations. Starting in November, for a period of three years, Google must allow Android users to download competing app platforms and use alternative in-app payment methods. Additionally, Google is prohibited from compensating device manufacturers to preinstall its Play Store.
This ruling is part of a lawsuit initiated by Epic Games, the maker of "Fortnite," in 2020. Epic Games accused Google of monopolizing Android app distribution and payments. Google has announced plans to appeal the jury's decision and challenge the mandated changes. In a related case, Google has agreed to a $700 million settlement to address claims from consumers and U.S. states that it charged inflated prices for apps. This settlement is pending approval, with Judge Donato questioning if the amount is adequate. Furthermore, Epic Games recently filed another lawsuit accusing Google of conspiring with Samsung to maintain Play Store's dominance. Both Google and Samsung have denied these allegations.
Google's control over online search is at the center of a lawsuit filed by the Justice Department in 2020. In August, U.S. District Judge Amit Mehta ruled that Google had illegally maintained its monopoly by paying billions to ensure it remains the default search engine on various platforms. This week, the Justice Department indicated it might seek a court order to dismantle parts of Google to address these antitrust violations. Potential remedies could include forcing Google to divest its Chrome browser and Android operating system. The government's specific proposals are expected in November, with Google’s counter-proposals due in December. Arguments are scheduled for April 2025.
Digital Advertising Market DominanceBeyond search and apps, Google is also confronting multiple lawsuits challenging its dominance in the digital advertising sector. U.S. District Judge Leonie Brinkema in Virginia recently concluded a non-jury trial in a case where Google is accused of unlawfully controlling all facets of the online ad market, leveraging its size to stifle competition. Closing arguments are slated for late November.
In addition to this, Google is contending with two related cases in federal courts in Texas and New York. Texas leads a coalition of states suing Google over its digital advertising practices, with a trial set for March 2025. Moreover, publishers and advertisers are pursuing claims that Google's advertising technology practices have resulted in overcharges and revenue losses.
As these antitrust cases unfold, they could fundamentally alter how Google operates across various domains, from app distribution to online search and digital advertising.
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