Google is about to break open the Android app ecosystem in ways the company fought for years to prevent. After withdrawing a last-ditch settlement attempt with Epic Games, Google told the court it's ready to start carrying rival app stores inside Google Play by July 22nd - just one week away. The move ends a legal battle that started when Epic deliberately violated Play Store rules in 2020, and it could finally give Microsoft the opening it needs to launch an Xbox mobile game store on Android.
Google just ran out of legal runway. The company and Epic Games jointly filed to withdraw their proposed settlement on Tuesday, which means a sweeping injunction from Judge James Donato takes full effect next week. Google told the court it's prepared to begin carrying third-party app stores within Google Play starting Wednesday, July 22nd - a seismic shift for the Android ecosystem that Google spent years fighting in court.
The withdrawal marks the end of a years-long legal saga that began when Epic deliberately broke Google's payment rules in August 2020, the same stunt it pulled with Apple. But while Apple largely prevailed in its case, Google lost spectacularly. In October 2024, Judge Donato ruled that Google maintained an illegal monopoly over Android app distribution and in-app payments, handing Epic one of the biggest antitrust victories in tech history.
The injunction doesn't just crack open Google Play - it sledgehammers the door off its hinges. Google must allow rival app stores to be distributed through Google Play itself, essentially forcing the company to promote its own competitors. Even more remarkably, Google has to share its entire catalog of Android apps with these rival stores, though developers can opt out if they choose. The ruling also bars Google from requiring its own billing system for in-app purchases and prohibits the company from paying device makers to pre-install Google Play exclusively.
For Microsoft, the timing couldn't be better. The company has been vocal about wanting to launch an Xbox mobile game store but faced the same distribution challenges that kept other would-be competitors at bay. Now Microsoft could potentially offer Fortnite, Call of Duty Mobile, and other major titles through an Xbox-branded store distributed via Google Play itself - exactly the kind of competition Google fought to prevent.
The settlement attempt that just collapsed would have retroactively resolved the case on terms more favorable to Google, but both companies apparently couldn't bridge their differences. According to sources familiar with the negotiations, the talks broke down over revenue sharing terms and how much control Google would retain over security and malware scanning for third-party stores.
Google's already adapting to the new reality, though not quietly. The company has loudly warned about security risks from unvetted app stores and predicted a surge in malware. "We've built Google Play with security and privacy protections that have kept Android users safe for over a decade," a Google spokesperson said in a statement. "Opening our platform to unvetted app stores will create new risks for users and developers alike."
But Epic CEO Tim Sweeney sees it differently. "This is what real platform competition looks like," Sweeney told TechCrunch in an interview last month. "Google had every opportunity to open up Android voluntarily. Instead, it took a jury verdict and a federal judge to force them to compete fairly."
The mobile app market is worth roughly $120 billion annually, with Google and Apple splitting the vast majority through their respective 15-30% commission rates. Epic's victory could fundamentally alter that duopoly, particularly if other major publishers like Amazon or gaming companies launch their own competing stores. Amazon already operates its own Android app store for Fire tablets - now it could distribute that same store through Google Play to hundreds of millions of additional devices.
The injunction runs for three years, giving rival app stores a substantial window to establish themselves. Google can still appeal, and almost certainly will, but appeals courts rarely overturn jury verdicts on antitrust matters. The company's best hope might be arguing that the remedies are too broad, but Judge Donato has shown little sympathy for Google's concerns throughout the case.
What happens on July 22nd remains somewhat unclear. Google hasn't detailed exactly how third-party stores will appear in Google Play or how the app catalog sharing will work technically. The company has until next week to implement a system that fundamentally contradicts its entire business model for the past 15 years.
The July 22nd deadline represents more than just a legal settlement - it's potentially the biggest structural change to mobile app distribution since the iPhone launched. If Microsoft, Amazon, and other major players actually build competing app stores that gain traction, the entire economics of mobile apps could shift. Developers might finally have real leverage to negotiate better terms, and consumers could see more competitive pricing. But Google's security warnings aren't entirely without merit - opening the floodgates to any app store willing to set up shop does create new attack vectors. The next three years will determine whether Epic's courtroom victory translates into a genuinely more competitive Android ecosystem, or whether Google Play's network effects prove too strong to overcome even with a court-ordered head start for rivals.
