Implications for the App Store Market
Following this decision, experts anticipate major changes in the way app stores operate. Google plans to appeal the jury’s decision, highlighting the ongoing dismantling of the app store question. Meanwhile, a new digital markets law in Europe, set to be effective in March, will force Google and Apple to open their platforms to alternate payment processors and app stores.
Regulators, competitors, and antitrust advocates have long criticized the fees charged by Apple and Google’s app stores. While companies selling products through a regular website pay lower fees to payment processors, the same products sold through mobile apps are subject to higher fees. Apple’s App Store revenue for this year stands at $23.7 billion, while Google Play has generated $13.5 billion, as reported by Data.ai.
The Battle against App Store Monopoly
Epic, the maker of popular game “Fortnite,” has been at the forefront of the fight against Apple and Google for over three years. The company violated app store rules by allowing in-app purchases without going through the platforms, resulting in its removal from both app stores. Efforts to regulate app stores through legislation in the US Congress failed due to intense lobbying from industry groups concerned about privacy and security risks.
However, other jurisdictions have taken decisive action. The European Union has classified Apple’s App Store and Google Play as “gatekeepers” under their Digital Markets Act, aiming to stimulate competition. South Korea passed a law requiring tech giants to offer alternative payment options, leading Apple to introduce an alternative payment system exclusively for South Korean users.
Consequences for Big Tech and Future Antitrust Cases
With Google being found guilty, legal counsel and experts predict that this verdict serves as a warning to other tech companies that run large platforms. The ongoing antitrust challenges against Google, Amazon, and Facebook may soon see more significant developments. However, Congress has struggled to pass substantial antitrust changes, and a recent ruling allowed Microsoft’s acquisition of Activision Blizzard to proceed.
Paul Swanson, an antitrust partner at law firm Holland & Hart, highlights the need for tech companies to reevaluate their business models. The verdict against Google serves as a reminder to these companies to exercise caution in their practices.