What Did Google Do This Week?

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GOOGLE WINS NOBEL PRIZE, BUT MAY NOT PASS GO IN MONOPOLY

Google’s empire is facing its biggest reckoning yet. While DeepMind basks in Nobel Prize glory, Google continues to battle multiple large-scale legal—and existential—threats. A judge this week ruled in the Epic Games case and it did not make for happy Googlers. From November 1st, Google will have to open up the Play Store, following a ruling in their case against Epic Games, meaning they will now have to offer alternatives to their app store. Not ones to sit by and watch while their sworn enemies squirm, Microsoft have already announced that the Xbox app will now allow users to download games on their Android phones.

Google must:

• Stop requiring Google Play Billing for apps distributed on the Google Play Store (the jury found that Google had illegally tied its payment system to its app store)

• Let Android developers tell users about other ways to pay from within the Play Store

• Let Android developers link to ways to download their apps outside of the Play Store

• Let Android developers set their own prices for apps irrespective of Play Billing

Google can’t:

• Share app revenue “with any person or entity that distributes Android apps” or plans to launch an app store or app platform

• Offer developers money or perks to launch their apps on the Play Store exclusively or first

• Offer developers money or perks not to launch their apps on rival stores

• Offer device makers or carriers money or perks to preinstall the Play Store

• Offer device makers or carriers money or perks not to preinstall rival stores

Google are — of course — appealing the decision, which — of course — means it could take years before any further changes actually happen. But commentators have already noted a drop in Google’s share price, down 15% from its record high of $191.18 on July 10. Could this be the beginning of the (painfully drawn out) end?

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SO WHAT?

Google’s bloggers say that the DOJ’s “radical and sweeping proposals risk hurting consumers, businesses, and developers”. Oxford comma aside, they might have a point. If Google is forced to sell Chrome or Android, it could disrupt the seamless ecosystem that users have come to rely on. For millions of consumers, Google’s services are deeply integrated, providing a level of convenience and compatibility that would be hard to replicate with multiple, potentially fragmented alternatives. The disruption could lead to confusion and frustration for users who have become accustomed to a unified Google experience across devices and platforms.

For businesses and developers, the changes could be equally challenging. The dominance of Android and the Play Store has created a relatively stable environment for app development and distribution, with developers able to reach billions of users through a single marketplace. If Google’s ecosystem splinters, the result won’t just be market fragmentation but quite probably user chaos (whether temporary or not). Do consumers really want fragmented app stores, or do regulators risk breaking what works? And can developers realistically cope with the complexity of fragmented ecosystems? The courts, and time, will be the judge.

The potential upside of breaking Google’s dominance could reshape the internet in positive ways. Opening up the Play Store and allowing third-party app stores to thrive might finally give developers and businesses more freedom to innovate without being restricted by Google’s policies and fees. A situation that could lead to lower costs for consumers and more diverse apps and services. It’s a double-edged sword: while the transition could be painful and messy, it may eventually create a more open and competitive digital landscape that benefits everyone in the (very) long run. Just don’t hold your breath for any of this.

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