Google drops Epic fight, opens Play Store to rivals from July 22

Google will begin carrying third-party Android app stores inside Google Play next week, after abandoning its bid to modify a landmark antitrust ruling that found the company illegally monopolized app distribution.

Google will allow rival app stores on its Play Store platform starting July 22, after withdrawing its motion to modify a federal court's antitrust injunction, ending a months-long legal battle with Epic Games that threatened to reshape the $200 billion mobile app market.

"We've agreed with Epic to withdraw our motion to modify the US Court's injunction rather than prolonging this process which creates uncertainty for the ecosystem," Dan Jackson, a Google spokesperson, said.

The decision follows an October 2024 ruling by US District Judge James Donato that Google's monopoly over Android app distribution violated antitrust law. Google had sought to replace the injunction with a "Registered App Stores" program requiring users to sideload third-party stores rather than download them directly through Google Play. The company also reached a secret $800 million settlement with Epic to resolve global disputes, though Judge Donato expressed skepticism about abandoning his original remedy.

The shift threatens Google's commission revenue from the Play Store, which generates billions annually through its 15% to 30% fee on in-app purchases. Alphabet shares face near-term pressure as investors weigh the impact of reduced fees and increased competition from stores operated by companies such as Microsoft, which could launch an Xbox game store on Android.

Google's Play Catalog Access Program will charge third-party stores a $5,000 annual fee for security and policy reviews, the company said. Participating stores must distribute apps only within the US, maintain "clear, non-discriminatory" trust and safety policies, and ensure no more than 1% of install attempts involve malware. The company is informing US app developers that their listings will automatically be provided to third-party stores starting July 22 unless they opt out.

It remains unclear whether Google will proactively invite third-party stores into Google Play or simply allow them to submit apps like any other developer. The court's permanent injunction states that Google "may not prohibit the distribution of third-party Android app distribution platforms or stores through the Google Play Store," but does not require it to actively promote them.

Outside the US, Google plans to launch its sideloaded Registered App Store program with the next version of Android later this year, creating two distinct tracks for Android app distribution: stores-within-a-store in the US and registered sideloading everywhere else.

The last time a major platform was forced to open its distribution channel — Apple's 2021 settlement of its Epic Games case in California — the App Store's commission structure remained largely intact, though Apple conceded to allow external payment links. Google's concession goes further by permitting direct competition within its own storefront, a remedy that antitrust experts say could set a precedent for other jurisdictions examining digital market dominance.

For Alphabet, the financial stakes are significant. The Play Store generated an estimated $12 billion in revenue in 2025, with the bulk coming from commission fees. Analysts project that the introduction of competing stores could erode Google's take rate by 200 to 400 basis points over the next two years, potentially reducing annual revenue by $1 billion to $2 billion. The next hearing in the case is scheduled for later this year to assess compliance with the injunction.

This article is for informational purposes only and does not constitute investment advice.