In a significant legal blow, Google has lost its appeal in the long-running antitrust case brought by Fortnite creator Epic Games. The U.S. Ninth Circuit Court of Appeals upheld a 2023 jury decision that found Google guilty of unlawfully maintaining monopolistic control over app distribution and payments on its Play Store platform. The court agreed with the jury’s verdict that Google’s business model restricts competition and hurts both developers and consumers.
Epic Games Secures Major Win for App Developers
Epic Games, which initially filed the lawsuit in 2020, claimed that Google forced developers into using its billing system with high commission fees, while also cutting off competing app stores from accessing Android users effectively. The court's affirmation of this position gives Epic a considerable advantage and sets a precedent that could lead to broader changes in how digital app ecosystems operate.
Google's Defense Rejected: No Protection Under Antitrust Laws
Google's appeal was rooted in the argument that its practices were in line with industry norms and beneficial for user security. However, the appellate court dismissed this reasoning, stating that Google had used anti-competitive tactics—such as revenue-sharing deals and pre-installation exclusivity with OEMs—to unfairly limit alternatives and suppress competition in the Android ecosystem.
What This Means for Google and the Industry
With the appeal denied, Google now faces the possibility of structural reforms to its Play Store policies. The ruling may compel Google to allow alternative payment methods and app stores on Android devices, echoing the regulatory pressure it's also facing in the EU and other global markets. The case also amplifies calls for greater oversight on big tech firms dominating key parts of the digital economy.
Next Steps: Remedies and Future Appeals
While Google is expected to comply with the court’s decision, it has not ruled out further legal options, including a potential appeal to the U.S. Supreme Court. Meanwhile, Epic Games is preparing to seek injunctions that could force Google to make immediate changes to its Play Store operations, reshaping the mobile app landscape for developers and consumers alike.