Google Wins Delay in Opening Android App Store to Rivals

Google app is seen on a smartphone in this illustration taken, July 13, 2021. (Reuters)
Google app is seen on a smartphone in this illustration taken, July 13, 2021. (Reuters)
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Google Wins Delay in Opening Android App Store to Rivals

Google app is seen on a smartphone in this illustration taken, July 13, 2021. (Reuters)
Google app is seen on a smartphone in this illustration taken, July 13, 2021. (Reuters)

A US judge on Friday let Google delay opening Android-powered smartphones to rival app shops, suspending a November 1 deadline ordered in an antitrust case brought by Fortnite-maker Epic Games.

Google was pleased by federal judge James Donato's decision to "temporarily pause the implementation of dangerous remedies demanded by Epic," a company spokesperson said, as an appeals court considers permanently blocking the order stemming from Epic's argument that the tech titan's Android Play store is an illegal monopoly.

"These remedies threaten Google Play's ability to provide a safe and secure experience and we look forward to continuing to make our case," the spokesperson added.

In response to the ruling, a spokesperson for Epic Games said in an email to AFP that Google's appeal was "meritless," citing the judge's deference to the Ninth Circuit Court of Appeals instead of striking down the order outright.

"The pause... is merely a procedural step," the spokesperson said.

Phones running on the Android operating system have about a 70 percent share of the world's smartphone market.

Google has been hit with a series of recent legal challenges to its dominance.

In August, a different judge found that Google's world-leading search engine was an illegal monopoly.

Google is also facing an antitrust lawsuit in a third federal case in Virginia over its dominance of online advertising.

Under the Epic Games order, for the next three years Google will be prohibited from engaging in several practices that were deemed anticompetitive by the jury in the landmark case.

For instance, the trial found that Google made its Play app store the only method to make payments to third party apps, like Fortnite.

A sizable chunk of app store revenue comes from video games, and Epic Games has long sought to have payments for its mobile games take place outside the Google or Apple app stores that take commissions as high as 30 percent.

Epic mostly lost a similar case against Apple, where a US judge largely ruled in favor of the iPhone-maker.

Apple and Google regularly argue that their app shop commissions are industry standard, and that they pay for benefits such as reach, transaction security and ferreting out malware.



Volkswagen Workers to Go on Warning Strikes Across Germany

The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo
The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo
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Volkswagen Workers to Go on Warning Strikes Across Germany

The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo
The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo

Volkswagen workers will go on warning strikes on Monday at plants across Germany, labor union IG Metall said, marking the first large-scale walkouts at Volkswagen's domestic operations since 2018.

The start of the strikes represents a further escalation of a dispute between Europe's top carmaker and its workers over mass layoffs, pay cuts and possible plant closures - drastic measures the company says it cannot rule out in the face of Chinese competition and cooling consumer demand.

Labor representatives at VW had on Nov. 22 voted for limited strikes at German operations from early December after talks over wages and plant closures failed to achieve a breakthrough, Reuters reported.

"If necessary, this will be the toughest collective bargaining battle Volkswagen has ever seen," IG Metall negotiator Thorsten Groeger said in a statement.

The carmaker said it continues to rely on constructive dialogue to find a sustainable solution.

"Volkswagen respects the right of employees to take part in a warning strike," a spokesperson said in reply to the union's announcement, adding that the company had taken steps in advance to ensure a basic level of supplies to customers and minimise the impact of the strike.

Warning strikes in Germany usually last from a few hours.

The union had last week proposed measures it said would save 1.5 billion euros ($1.6 billion), including forgoing bonuses for 2025 and 2026, which Europe's top carmaker dismissed.

Volkswagen has demanded a 10% wage cut, arguing it needs to slash costs and boost profit to defend market share in the face of cheap competition from China and a drop in European car demand.

The company is threatening to close plants in Germany for the first time in its 87-year history.

"Volkswagen has set fire to our collective agreements and instead of extinguishing this fire in three collective bargaining sessions, the management board is throwing open barrels of petrol into it," Groeger said.

An agreement not to stage walkouts had ended on Saturday, IG Metall said, enabling workers to carry out warning strikes from Sunday across VW AG's German plants.

"Warning strikes will start at all plants from Monday. How long and how intensive this confrontation needs to be is Volkswagen's responsibility at the negotiating table," Groeger said.

Labor representatives and management will meet again on Dec. 9 to carry on negotiations over a new labor agreement for workers at the German business - VW AG - with unions vowing to resist any proposals that do not provide a long-term plan for every VW plant.