Google appeal rejected in Epic Games app store antitrust case

https://appdevelopermagazine.com/epic-games-sues-google-for-blocking-app-distribution/Alphabet Inc.'s Google was unsuccessful in its attempt to overturn a federal court ruling that ordered the company to reform its Android app store practices. The U.S. Court of Appeals for the Ninth Circuit issued a unanimous decision rejecting Google’s claims that the trial judge made legal errors that benefited Epic Games, the developer behind the popular game Fortnite.

The legal dispute, initiated by Epic in 2020, accused Google of monopolizing the distribution and payment processing of Android apps. Epic alleged that Google’s control over the Play Store restricted competition by limiting alternative app store access and in-app transaction options. A San Francisco jury sided with Epic in 2023, determining that Google had violated antitrust laws.

Google appeal rejected in Epic Games app store antitrust case

U.S. District Judge James Donato responded to the jury’s verdict by ordering Google to make substantial changes to its Play Store. These included requirements for Google to permit rival app stores to be downloaded from within its Play Store and to provide competitors access to the app catalog. That order had been paused pending Google's appeal.

The appellate panel, consisting of Judges M. Margaret McKeown, Danielle Forrest, and Gabriel Sanchez, stated that the case presented abundant evidence of Google's anticompetitive behavior that reinforced its market dominance. Judge McKeown noted that extensive proceedings had been conducted before the injunction was issued.

In its defense, Google argued that the changes imposed by the court would negatively impact user safety and reduce consumer choice. Lee-Anne Mulholland, the company’s vice president of regulatory affairs, reiterated this position following the ruling, stating that the decision would significantly hinder user security and innovation within the Android ecosystem. Google confirmed its intention to continue appealing the decision.

Epic CEO Tim Sweeney publicly responded by announcing that the Epic Games Store would be coming to Android through the Google Play Store, celebrating the outcome of the lawsuit.

Google also contended that the court unfairly restricted its ability to argue that its Play Store competes with Apple’s App Store. Additionally, the company maintained that Epic’s suit should not have been decided by a jury, given that it sought injunctive relief rather than financial damages—typically a matter for a judge to resolve.

Epic countered by asserting that the Android app market had experienced years of anticompetitive conduct. The company rejected Google’s argument that the mandated changes would compromise privacy and security.

The U.S. Department of Justice, Federal Trade Commission, and Microsoft each submitted briefs supporting Epic’s position. Epic is simultaneously involved in litigation against Apple, related to App Store policies, stemming from the same 2020 lawsuit. In that case, Apple is appealing a decision stating it violated a previous injunction.

The case marks another significant legal challenge for Google, which is currently facing multiple antitrust lawsuits in the United States concerning various aspects of its business operations. The recent ruling may still be appealed to the full Ninth Circuit or escalated to the U.S. Supreme Court.