Here’s How Much Google Says It’d Cost to Fulfill Epic’s Biggest Demands

How much would it cost Google to let third-party app stores like the Epic Games Store live inside its own Google Play Store, with access to every Android app? Google says the reputational damage can’t be calculated — but that it’d take 12 to 18 months and upwards of ₹490 crores ($60 million) to build and maintain the technical underpinnings.

Epic’s Demands and Google’s Cost Estimates

Epic’s biggest ask in the ongoing legal battle was for Google to open up its own Android app store, forcing Google to carry other competing app stores inside its walls. This demand follows the jury's decision last December, deeming the Google Play app store and Google Play Billing illegal monopolies.

Last month, Judge James Donato ordered Google to figure out how much fulfilling these demands would cost. Here’s a summary of Google’s estimates:

• Catalog Access: ₹225 – ₹540 crores ($27.5 – $66.9 million) over 12–16 months to let third-party app stores access Google Play apps.

• Library Porting: ₹14 – ₹19 crores ($1.7 – $2.4 million) over 12 months to allow users to transfer ownership of their Android apps to a third-party app store in bulk.

• Distribution of Third-Party App Stores: ₹260 – ₹550 crores ($32.1 – $67.7 million) over 12–16 months to distribute third-party app stores within Google Play.

• App Review Costs: A redacted amount to review apps and app updates carried by third-party stores.

While ₹490 crores ($60 million) on the low end (or upwards of ₹1,100 crores ($137 million) on the high end) may sound like a lot, court documents revealed that Google makes billions of dollars in profit from the Google Play store every quarter. For 2021, Google’s forecast suggested the store would produce nearly ₹98,000 crores ($12 billion) of profit in a single year. That’s over ₹250 crores ($31 million) in profit each day.

Google’s Arguments Against the Changes

Google also argues that it should be entitled to collect a fee from third-party app stores if it were forced to implement these changes. But it’s not all about the money. In the full document, Google claims that Android app developers “would suddenly face a host of regulatory and compliance risks associated with advertisement and distribution of their apps around the world” if Google were to let any app store take its catalog of apps.

Google argues that user safety and its reputation are at stake. Image: Google

Google also points to concerns about user safety and its reputation. The company argues that “ill-intentioned app stores could then intermingle the apps from Google’s catalog with malware or pirated apps from their own catalog,” among other examples.

“These proposed remedies would require a dramatic redesign of the Play Store and Android that would harm Android users and developers, the trust and safety of the Play store, and the Android ecosystem and require Google to become a forced dealer for its competitors,” Google writes.

The Next Steps

Epic will now get a chance to question Google’s estimates and file a rebuttal. The court is scheduled to have a final hearing on August 14th.

This legal battle between Epic and Google highlights the complex and high-stakes nature of app store ecosystems and the significant costs and risks involved in making substantial changes to established platforms.

Stay tuned for further updates on this ongoing saga and its implications for the tech industry.

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