SAN FRANCISCO (AP) — A federal judge on Monday ordered Google to tear down the digital walls shielding its Android app store from competition as punishment for maintaining an illegal monopoly that helped expand the company's internet empire.
The injunction issued by U.S. District Judge James Donato will require Google to make several changes that the Mountain View, California, company had been resisting. Those include a provision that will require its Play Store for Android apps to distribute rival third-party app stores so consumers can download them to their phones, if they so desire.
The judge’s order will also make the millions of Android apps in the Play Store library accessible to rivals, allowing them to offer up a competitive selection.
Donato is giving Google until November to make the revisions dictated in his order. The company had insisted it would take 12 to 16 months to design the safeguards needed to reduce the chances of potentially malicious software making its way into rival Android app stores and infecting millions of Samsung phones and other mobile devices running on its free Android software.
The court-mandated overhaul is meant to prevent Google from walling off competition in the Android app market as part of an effort to protect a commission system that has been a boon for one of the world's most prosperous companies and helped elevate the market value of its corporate parent Alphabet Inc. to $2 trillion.
Google said in a blog post that it will ask the court to pause the pending changes, and will appeal the court’s decision.
Donato also ruled that, for a period of three years ending Nov. 1, 2027, Google won't be able to share revenue from its Play Store with anyone who distributes Android apps or is considering launching an Android app distribution platform or store. It also won't be allowed to pay developers, or share revenue, so that they will launch an app in the Google Play Store first or exclusively, and can't make deals with manufacturers to preinstall the Google Play store on any specific location on an Android device. It also won't be able to require apps to use its billing system or tell customers that they can download apps elsewhere and potentially for cheaper.
The Play Store has been earning billions of dollars annually for years, primarily through 15% to 30% commissions that Google has been imposing on digital transactions completed within Android apps. It's a similar fee structure to the one that Apple deploys in its iPhone app store — a structure that prompted video game maker Epic Games to file antitrust lawsuits four years ago in an effort to foster competition that could help drive down prices for both app makers and consumers.
A federal judge mostly sided with Apple in a September 2021 decision that was upheld by an appeals court. Still, a jury favored Epic Games after the completion of a four-week trial completed last year and delivered a verdict that tarred the Play Store as an illegal monopoly.
That prompted another round of hearings this year to help Donato determine what steps should be taken to restore fair competition. Google argued that Epic Games was seeking some extreme changes, saddling the company with costs that could run as high as $600 billion. Epic contended Google could level the playing field for as little as $1 million. It's unclear how much the changes ordered by Donato will cost Google.
Although Epic lost its antitrust case against Apple, Donato's ruling could still have ripple effects on the iPhone app store as another federal judge weighs whether Apple is making it easy enough to promote different ways that consumers can pay for digital transactions. Apple was ordered to allow in-app links to alternative payment systems as part of U.S. District Judge Yvonne Gonzalez Rogers' decision in that case, but Epic contends the provision is being undermined with the creation of another commission system that stifles consumer choice.
The forthcoming Play Store shakeup could be just the first unwelcome shock that antitrust law delivers to Google. In the biggest antitrust case brought by the U.S. Justice Department in a quarter century, U.S. District Judge Amit Mehta in August declared Google's dominant search engine to be an illegal monopoly, too, and is now getting ready to start hearings on how to punish Google for that bad behavior. Google is appealing Mehta's ruling in the search engine case in hopes of warding off a penalty that could hurt its business even more than the changes being ordered in the Play Store.
“Provided the ruling survives the appeals process, Google will almost certainly take a revenue hit,” said Emarketer analyst Evelyn Mitchell-Wolf. “No doubt some of the largest app developers like Epic Games will start encroaching on Google Play Store’s market share, meaning Google will lose out on its usual cut of subscription and in-app purchases.”
The analyst added that, while the Google Play Store will likely continue to benefit from brand recognition since it was the default Android app store for so long, “some consumers may defect if they can get better deals on their favorite apps elsewhere.” And app developers will likely take advantage of the opportunity to let consumers know about direct downloads.
“So Google may see fewer Play Store revenues even among the Android users that stick to the default,” Mitchell-Wolf said.
Alphabet's shares fell $4.08, or 2.4%, to close Monday at $162.98.
FILE - A sign is shown on a Google building at their campus in Mountain View, Calif., on Sept. 24, 2019. (AP Photo/Jeff Chiu, File)
TEL AVIV, Israel (AP) — A rocket fired from Yemen hit an area of Tel Aviv overnight, leaving 16 people injured by shattered glass, the Israeli military said Saturday, days after Israeli airstrikes hit Houthi rebels who have been launching missiles in solidarity with Palestinians in Gaza.
Another 14 people sustained minor injuries as they rushed to shelters when air raid sirens sounded before dawn Saturday, the military said.
The Houthis issued a statement on Telegram saying they had aimed a hypersonic ballistic missile at a military target, which they did not identify.
“A flash of light, a blow and we fell to the ground. Big mess, broken glasses all over the place,” said Bar Katz, a resident of a damaged building.
The attack came after Israeli airstrikes on Yemen’s Houthi-held capital, Sanaa, and port city of Hodeida killed at least nine people Thursday. The Israeli strikes were in response to a Houthi long-range missile that hit an Israeli school building. The Houthis also claimed a drone strike targeting an unspecified military target in central Israel on Thursday.
Israel's military says the Iran-backed Houthis have launched more than 200 missiles and drones during the Israel-Hamas war in Gaza. The Houthis have also attacked shipping in the Red Sea and Gulf of Aden and say they won’t stop until there is a ceasefire in Gaza.
The Israeli strikes Thursday caused “considerable damage” to the Houthi-controlled Red Sea ports that will lead to the "immediate and significant reduction in port capacity,” U.N. spokesman Stephane Dujarric said. The Hodeida port has been key for food shipments into Yemen in its decade-long civil war.
U.N. Secretary-General Antonio Guterres said both sides’ attacks risk further escalation in the region.
Mourners in Gaza held funerals for 19 people — 12 of them children — killed in Israeli strikes on Friday and overnight.
One strike hit a residential building in the built-up Nuseirat refugee camp in central Gaza, killing at least seven Palestinians, including five children and one woman, and injuring 16 others, health officials said.
In Gaza City, a strike on a house killed 12 people, including seven children and two women, according to Al-Ahli Hospital where the bodies were taken.
One man cradled a tiny shroud-wrapped body as mourners gathered at the hospital in Gaza City. Women comforted each other as they wept.
Overall, Gaza's Health Ministry said 21 people had been killed over the past 24 hours.
More than 45,200 Palestinians have been killed in Gaza since October 2023, when a Hamas attack in Israel killed about 1,200 people and triggered the 14-month war. The health ministry does not distinguish between civilians and combatants but has said more than half of fatalities are women and children.
Israel faces heavy international criticism over the unprecedented levels of civilian deaths in Gaza. It says it only targets militants and blames Hamas for civilian deaths because its fighters operate in residential areas.
Gaza's Health Ministry issued an urgent appeal for medical and food supplies to be delivered to Kamal Adwan Hospital in Beit Lahiya in largely isolated northern Gaza, while the hospital director described conditions as dire, as Israel's military presses its latest offensive.
The ministry reported continuous gunfire and Israeli shelling near the hospital, saying “shells have struck the third floor and the hospital’s entrances, creating a state of panic.”
Hospital director Dr. Husam Abu Safiyeh said the facility faced “severe shortages” and asserted that requests for essential medical supplies and ways to maintain oxygen, water and electricity systems "have largely gone unmet.”
He said 72 wounded people were being treated at the hospital.
“Food is very scarce, and we cannot provide meals for the wounded," Safiyeh added. “We are urgently calling on anyone who can provide supplies to help us.”
Aid groups have said Israeli military operations and armed gangs have hindered their ability to distribute aid.
The Israeli military organization dealing with humanitarian affairs for Gaza said Saturday it had led an operation delivering thousands of food packages, flour and water to the Beit Hanoun area in the north. It said trucks with the U.N. World Food Program transported them to distribution centers in the area Friday.
Iran on Saturday said unknown gunmen had killed a local staffer of the Iranian embassy in Syria, the official IRNA news agency said.
Its report quoted foreign ministry spokesman Esmail Baghaei as saying “terrorists” opened fire on Davood Bitaraf’s car last Sunday. It did not say what he did with the embassy.
Baghaei said Iran considers Syria’s interim government responsible for finding and prosecuting those behind the killing. Iran had been a key ally of recently ousted Syrian leader Bashar Assad.
Shurafa reported from Deir al Balah, Gaza Strip. Associated Press writers Elena Becatoros in Majdal Shams, Golan Heights, contributed to this report.
Follow AP’s war coverage at https://apnews.com/hub/israel-hamas-war
Bodies of victims of an Israeli airstrike at the Nuseirat refugee camp are prepared for the funeral prayer outside the Al-Aqsa Martyrs hospital in Deir al-Balah, Gaza Strip, Saturday, Dec. 21, 2024. (AP Photo/Abdel Kareem Hana)
Men pray over the bodies of victims of an Israeli airstrike at the Nuseirat refugee camp during a funeral prayer outside the Al-Aqsa Martyrs hospital in Deir al-Balah, Gaza Strip, Saturday Dec. 21, 2024. (AP Photo/Abdel Kareem Hana)
Bodies of victims of an Israeli airstrike at the Nuseirat arrive at the Al-Aqsa Martyrs hospital before their funeral in Deir al-Balah, Gaza Strip, Saturday, Dec. 21, 2024. (AP Photo/Abdel Kareem Hana)
An Israeli soldier observes the site where the missile launched from Yemen landed Jaffa district, in Tel Aviv, Israel, Saturday, Dec. 21, 2024. (AP Photo/Tomer Appelbaum)
