A U.S. judge issued a ruling on Monday requiring Alphabet's Google to revamp its mobile app operations, allowing Android users increased flexibility in downloading apps and processing transactions. This decision follows a jury's verdict last year in favor of Epic Games, the creator of "Fortnite."

The injunction, delivered by U.S. District Judge James Donato in San Francisco, specifies the modifications Google must implement to enhance competition within its profitable Play Store. These changes include permitting the availability of Android apps from alternative sources.

According to Donato's ruling, Google is prohibited from restricting in-app payment options for three years and must enable users to download competing third-party Android app platforms or stores. Additionally, the order prevents Google from financially incentivizing device manufacturers to preinstall its app store and from sharing revenue generated through the Play Store with other app distributors.

In response, Google announced its intention to appeal the ruling to the 9th U.S. Circuit Court of Appeals and will seek a stay on Donato’s order while the appeal is pending.

Google expressed concerns that while these changes may appease Epic, they could lead to various unintended consequences detrimental to American consumers, developers, and device manufacturers. Epic's CEO, Tim Sweeney, remarked on social media that Donato's ruling is significant news, indicating that the Epic Games Store and other app stores will be available on Google Play by 2025. He emphasized that app developers and store creators have three years to cultivate a robust and competitive Android ecosystem that Google cannot hinder.

Following the ruling, Alphabet's shares fell by 2.5%, closing at $164.39. Judge Donato also mandated that Epic and Google form a three-member technical committee to oversee the implementation and monitoring of the injunction, with each party selecting one member and those two choosing the third.

Donato announced that his injunction will take effect on November 1, allowing Google the necessary time to align its existing agreements and practices with legal requirements. 

Epic Games initiated a lawsuit in 2020, alleging that Google was monopolizing access to applications on Android devices and controlling payment methods for in-app purchases. In December 2023, a jury in Cary, North Carolina, found in favor of Epic, determining that Google had unlawfully suppressed competition through its management of app distribution and payment systems, which set the stage for Donato's injunction.

Google had requested that Donato dismiss Epic's suggested reforms, claiming they would be expensive, excessively restrictive, and potentially detrimental to consumer privacy and security. However, the judge largely rejected these concerns during a hearing in August. 

"You will ultimately incur costs to rectify the situation after being identified as a monopolist," he remarked to Google's legal team.

In a different antitrust matter in Washington, U.S. District Judge Amit Mehta ruled on August 5 in favor of the U.S. Justice Department, stating that Google had illegally monopolized web search, investing billions to secure its position as the default search engine on the internet. 

Additionally, Google is currently facing a trial in Virginia federal court regarding a Justice Department lawsuit that addresses its dominance in the advertising technology sector. Google has denied all allegations in these three cases.