GoKawiilBig changes are coming to Android apps, but they’re not the changes Google wanted. The settlement between Google and Epic that aimed to put to rest the companies’ long-running antitrust battle is being withdrawn, and that means third-party app stores are coming to the Play Store. Google has confirmed that it will begin distributing rival app stores next week, setting the stage for competing platforms to take a bite out of Google’s Android revenue stream.
This case has the potential to upend software distribution on Android, and it’s all because of V-Bucks. In 2020, Epic Games was frustrated that it had to pay a 30 percent cut to Apple and Google every time someone bought a bundle of V-Bucks in a mobile version of Fortnite. The publisher added a direct purchase option to the game in violation of both Apple’s and Google’s rules. Naturally, Fortnite was pulled from the App Store and Google Play, kicking off the antitrust lawsuit that is only now reaching its conclusion.
While Apple suffered little penalty in its Epic case, Google was tripped up by its anti-competitive management of the supposedly open Android ecosystem. Google used its market position to discourage device makers from promoting or pre-loading non-Google app stores and attempted to hide that conduct. The remedies set by Judge James Donato included lower fees, mirroring Google Play apps in other stores, and most vitally, placement of alternative app stores in Google Play.
The court felt adding third-party app stores to Google Play was the best way to ensure fair access. After all, Google was found guilty of anticompetitive conduct, which entrenched the Play Store and made it the only source of software for most Android users. The network effects of Google’s dominant position would therefore make it difficult for a competitor to attract significant market share with sideloading.