NIX Solutions: Google Wins Temporary Stay in Epic Games Lawsuit

Google has achieved a small but significant victory in its ongoing lawsuit against Epic Games. Judge James Donato has suspended his earlier ruling, which had required changes to the Google Play app store rules starting November 1. This suspension grants an administrative stay on all but one part of the ruling, giving Google more time before potentially having to open its Android app store.

A Temporary Delay for Google

The decision means that Google won’t be required to make immediate changes to the Play Store until the appeals process concludes—or possibly not at all. A jury had unanimously ruled in December that the Play Store was operating as an illegal monopoly, and Google is currently appealing that verdict. The stay allows the company to delay implementing the required changes while it awaits a decision from an appeals court regarding a longer stay for the duration of the appeal.

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Judge Donato hinted that the appellate court would likely grant Google a more extended stay, which could prolong the company’s control over the Play Store until the legal process is fully resolved.

One Key Restriction Still Stands

Although most of Judge Donato’s ruling has been temporarily stayed, one part will go into effect. Starting from November 1, 2024, until November 1, 2027, Google will not be allowed to enter into deals with carriers or device manufacturers that prevent the installation of alternative app stores in exchange for financial incentives, such as revenue sharing or other deals.

If the full ruling had been enforced, it would have allowed developers to bypass Google’s payment system as early as November 1, 2024. Additionally, alternative app store clients would have been introduced in the Play Store about eight months later, offering more competition in the mobile app market.

The Stakes for Developers and Consumers

Initially, Judge Donato had given Google less than a month to comply with the order to begin opening its ecosystem. However, Google argued that it needed the same 90-day period that Apple was granted in a similar ruling. According to Epic Games, Google did not object to this extended timeframe. Without the temporary stay, the ruling would have had immediate consequences for developers and consumers.

For instance, Microsoft had announced plans to enable game purchases and launches directly through its Xbox app on Android. Similarly, Epic Games had promised to introduce its app store on Google Play next year. With this delay, those plans may be postponed for several years.

Statements from Both Sides

Google expressed satisfaction with the court’s decision to grant the stay, emphasizing its commitment to maintaining security and the user experience on the Play Store. In a statement, the company said, “We are pleased with the District Court’s decision to temporarily stay the dangerous remedies sought by Epic until the Court of Appeals hears our motion to further stay the remedies pending an appeal. These remedies threaten Google Play’s ability to provide a safe and secure experience, and we look forward to fighting back for the 100 million Android users in the U.S., the more than 500,000 U.S. developers, and the thousands of partners who make money on our platforms.”

On the other hand, Epic Games criticized the stay, accusing Google of delaying tactics, notes NIX Solutions. Epic’s statement read, “Today, the Court made clear that Google’s appeal is without merit and denied their motion to delay the process of opening up Android devices to competitors while they appeal. Google continues to use intimidation and baseless security threats to assert its control over Android devices and continue to collect exorbitant fees. The stay of the injunction is merely a procedural measure to allow the Ninth Circuit [Court of Appeals] to rule on Google’s motion to stay the injunction pending appeal.”

What Comes Next

With this stay in place, the battle between Google and Epic Games continues. The appeals court’s decision will play a critical role in determining the future of app store competition on Android devices. In the meantime, it’s clear that significant changes are unlikely to happen soon. We’ll keep you updated on further developments as this legal saga unfolds.