Google Play Store to Allow Third-Party App Stores Starting July 22 After Epic Games Antitrust Battle

Google has confirmed that approved third-party app stores will begin appearing on the Google Play Store from July 22 following its antitrust case with Epic Games. The move opens Android to greater competition while introducing strict security requirements for alternative app marketplaces.

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The tech giant is gearing up for what could be one of the largest changes to come to Android. Starting on July 22, the company will begin making it possible for third-party app stores to be installed on devices from within the Google Play Store in the United States. This change follows years of litigation between Google and Epic Games that have resulted in a significant change to the future of Android.

For many years now, Google Play has been the go-to place for Android users looking to install their applications. Although the Android system allows for sideloading and even other app markets to be used, Google's power prevented any significant competition to emerge until now.

How the Epic Games Lawsuit Changed Android Forever

This issue can be traced back to 2020 when Epic Games was accusing Apple and Google of excessive commissions that they were charging for in-app purchases. As a result, the company developed an alternative payment system in the Android and iOS versions of its game Fortnite, thereby avoiding mandatory payments that involved 30% commission.

Indeed, it was no surprise that Apple and Google pulled Fortnite from their respective app stores, while Epic reacted by suing both companies for antitrust violations.

However, while the consequences of litigation for Apple are negligible, Google found itself on the receiving end of court decisions that established that the company violated the principle of fair competition by abusing its dominant position in the market and discouraging smartphone manufacturers from marketing or installing other app stores on their devices.

Original Court Order Required Google to Open Play Store

Several remedies were imposed by Judge James Donato with the aim of bringing about competition in the distribution of apps through Android. The most critical of all was that competing app stores must be permitted within Google Play.

It is believed that this remedy will provide competing app stores with a real chance of reaching Android users. Allowing the user to sideload apps was not sufficient since Google had the power of network effects due to its dominant position in the market, making it impossible for any other app store to emerge.

Google and Epic tried to remove these obligations in exchange for an agreed-upon settlement. Under such agreement, Google will start a Registered App Store Program which allows registered app stores access to Android system capabilities while at the same time asking users to install such app stores via sideloading.

Settlement Changes Withdrawn as Court Remains Skeptical

In an earlier discussion this year, Judge Donato raised doubt regarding the ability of Google's new proposal to enhance the element of competition.

Moreover, further supporting the court’s fears is a new analysis presented by Nancy Rose, a professor of economics at MIT, who noted that the Registered App Store proposal by Google would not be able to address the disadvantage experienced by competing app stores.

Given the unlikelihood of securing court approval for the modification, Google and Epic both opted to withdraw their request to alter the initial injunction.

Google indicated that although the general agreement reached between the two firms still stands, it will no longer pursue modifications in the remedies issued by the court initially.

Google Confirms Third-Party App Stores Will Arrive on July 22

It has been announced that Google will now distribute third-party app stores that have passed approval through the Google Play store starting from July 22.

This marks one of the most significant policy changes ever implemented in the software world of Android.

According to the original order of the court, the app stores will have the option of providing access to the Google Play application catalogue. The developer himself will be free to decide whether he wants to make his app available for distribution through other stores or not.

This will increase competition and give freedom of choice to the developer at the same time.

Strict Rules Will Apply to Alternative App Stores

Although Google is opening Play Store access to competing marketplaces, it is introducing several security and quality requirements.

Approved third-party app stores must:

• Block malware and harmful software.

• Respect copyright and intellectual property rules.

• Provide reliable app update mechanisms.

• Allow users to uninstall applications easily.

• Maintain security standards that meet Google's requirements.

Google has also confirmed that app stores whose platforms show more than 1% malware or unwanted software installation attempts may be removed from the program.

To participate, alternative app store operators will also be required to pay $5,000 per year, which Google says covers security and compliance reviews.

Registered App Stores Will Continue Globally

In addition to adhering to the US court’s judgment, Google will be moving ahead with its Registered App Store project all around the world.

While in countries other than the US, the use of these alternate app stores is likely to depend on their registration through the project, not from the Play Store, in the US itself, authorized third-party app stores will be available via the Google Play store.

It remains to be seen whether apps from the Play Store will have any more capabilities than those registered as Registered App Stores outside the Play Store.

What This Means for Android Users and Developers

Android users would be greatly benefited from such a modification because it would bring great diversity in the selection of app stores. While currently having Google Play Store as their primary source of apps, Android users might get acquainted with niche-app stores dedicated to games, open source, business apps, or developers’ specific marketplaces.

Moreover, developers would enjoy greater diversity and freedom due to the possibility of app stores to compete with each other which would provide better chances for them to earn more money and decrease commission fees.

Finally, Google made sure to highlight the importance of security by requiring certification, protection against malware and checking compliance.

The lawsuit between Google and Epic has been one of the most significant antitrust lawsuits in the tech world. What started out as a simple issue regarding in-app purchases of Fortnite has ended up with structural changes that might redefine how apps will be distributed via Android in the coming years.

The advent of third-party app stores into the Google Play store from July 22 has signaled the beginning of a new era for Android, where competition is bound to play a very big role in app distribution. While the Play Store will still be run by Google, there will be a lot of choice soon.