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.



Nokia Joins Ericsson in Seeing Signs of Recovery after Mixed Results

FILE PHOTO: A Nokia logo is seen at company's headquarters in Espoo, Finland, May 5, 2017. REUTERS/Ints Kalnins
FILE PHOTO: A Nokia logo is seen at company's headquarters in Espoo, Finland, May 5, 2017. REUTERS/Ints Kalnins
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Nokia Joins Ericsson in Seeing Signs of Recovery after Mixed Results

FILE PHOTO: A Nokia logo is seen at company's headquarters in Espoo, Finland, May 5, 2017. REUTERS/Ints Kalnins
FILE PHOTO: A Nokia logo is seen at company's headquarters in Espoo, Finland, May 5, 2017. REUTERS/Ints Kalnins

Finnish telecom equipment supplier Nokia on Thursday reported a 9% rise in third-quarter operating profit on cost cuts, and echoed rival Ericsson in seeing demand recovery in some areas.
However, quarterly net sales fell 8% to 4.33 billion euros ($4.70 billion), missing estimates of 4.76 billion euros due mainly to lower sales to India. That sent its shares down 3%, Reuters said.
Both Nokia and Ericsson said North America has started to show signs of growth after years of weakness, but Nokia's market share in the region had dropped after losing contracts with Verizon and AT&T over the years.
"We have seen a really bad cycle... Now that decline is over and it is starting to gradually recover, which is good, but it (telecom) will never be a huge growth market," CEO Pekka Lundmark said in an interview.
He cautioned that growth was happening more slowly than earlier expected.
"North America has started to show pretty good signs, and we had strong growth in Q3 in network infrastructure," Lundmark said.
Nokia's total addressable market in telecom stands at around $84 billion.
To look for growth, Nokia has been targeting the data center and defense sectors, splurging $2.3 billion to buy US optical networking gear maker Infinera in June to target data center operators.
"That's where the growth will come from, and that growth is starting already," Lundmark said.
Demand from Indian clients, which has dropped significantly this year, is also recovering after Nokia last month got a big contract from Vodafone Idea and is expected to get another from Bharti Airtel .
"India will return back to growth next year," Lundmark said.
Comparable earnings before interest and tax rose to 454 million euros, beating the 424 million euros expected by analysts in an LSEG poll.

Nokia maintained its full-year profit outlook of 2.3 billion to 2.9 billion euros, but said it was currently tracking within the bottom half of that range.