Google Play Store Overhaul Mandated as Supreme Court Rejects Delay Request in Antitrust Case

The US Supreme Court has declined to shield Google from implementing court-ordered changes to its Android app marketplace, paving the way for a significant restructuring of the Play Store.

In a brief single-sentence ruling, the Supreme Court rejected Google's request to delay compliance with a judge's order from last year that requires substantial modifications to increase competition in the Android app ecosystem.

Following this decision, Google must now begin transforming its Play Store for Android devices, which powers most smartphones competing with Apple's iPhone in the American market.

Under US District Judge James Donato's October order, Google must provide competitors access to its complete collection of Android applications and enable users to download these alternative options directly from the Play Store.

Google had warned the Supreme Court last month that implementing these changes would expose over 100 million US Play Store users to "enormous security and safety risks" by potentially allowing marketplaces containing malicious or pirated content to proliferate.

The tech giant faced an October 22 deadline to begin complying with the order unless the Supreme Court granted a stay. Google was seeking protection while pursuing final appeals to overturn a December 2023 jury verdict that declared the Play Store an illegal monopoly.

In response to the ruling, Google stated it would continue its legal fight while reluctantly complying with what it considers a problematic mandate, asserting that "the changes ordered by the US District Court will jeopardise users' ability to safely download apps."

Google had previously been protected from implementing these changes during its appeals process, but the Ninth Circuit Court of Appeals rejected its arguments two months ago.

In its Supreme Court filing, Google contended it was being unfairly forced to become a supplier and distributor for potential competitors.

Judge Donato determined that dismantling the Play Store's competitive barriers was necessary to counter abusive practices that had generated billions in annual profits for Google, primarily through its exclusive payment processing system that imposed 15-30% fees on in-app transactions.

These commissions were central to the antitrust lawsuit filed by Epic Games against Google in 2020, which culminated in a month-long trial and the jury's monopoly verdict.

Epic Games, creator of Fortnite, previously lost a similar antitrust case against Apple's iPhone App Store. Although Judge Yvonne Gonzalez-Rodgers ruled the iPhone App Store wasn't an illegal monopoly, she ordered Apple to permit links to alternative payment systems, changes that resulted in Apple being held in civil contempt earlier this year.

Epic CEO Tim Sweeney celebrated the Supreme Court's decision, stating it would allow consumers to access alternative app payment options "without fees, scare screens, and friction."

While the Play Store modifications will likely impact Google's revenue, the company derives most of its income from its digital advertising network, which centers around its dominant search engine—core components of its internet business that face legal challenges on other fronts.

In separate cases brought by the US Justice Department, both Google's search engine and portions of its advertising technology have also been declared illegal monopolies.

A federal judge in the search engine case earlier this year rejected the Justice Department's proposed breakup in a decision widely viewed as favorable to Google. The government is now pursuing structural remedies in the advertising technology case, with proceedings scheduled to conclude with closing arguments on November 17 in Alexandria, Virginia.