Alphabet’s Google has suffered a significant legal setback in the U.S. as a federal appeals court rejected its attempt to overturn a key ruling in an antitrust case filed by Epic Games, the creators of the game ‘Fortnite’. The San Francisco-based 9th U.S. Circuit Court of Appeals upheld a lower court’s finding that Google illegally stifled competition by unfairly controlling how Android users get apps and make payments.
The lawsuit, initiated in 2020, accused Google of monopolizing the Android app distribution and in-app billing markets. A San Francisco jury sided with Epic in 2023, leading U.S. District Judge James Donato to issue an order requiring Google to implement reforms. These reforms included allowing users to download rival app stores directly from the Play Store and making the Play Store’s app catalog available to competitors. The appeals court’s decision affirms this order.
In its appeal, Google argued that the trial judge made legal errors and that its Play Store competes with Apple’s App Store. However, a unanimous three-judge panel, led by Circuit Judge M. Margaret McKeown, found no merit in Google’s claims. McKeown wrote that the trial record was “replete with evidence that Google’s anti-competitive conduct entrenched its dominance.”
This ruling is a major blow to Google, which is also facing other antitrust lawsuits from the U.S. Justice Department. Lee-Anne Mulholland, Google’s vice president of regulatory affairs, stated that the decision would “significantly harm user safety, limit choice, and undermine the innovation that has always been central to the Android ecosystem.” In contrast, Epic CEO Tim Sweeney celebrated the win, announcing on social media that the “Epic Games Store for Android will be coming to the Google Play Store!” Google is expected to continue its legal fight, with the option to appeal the decision to the full 9th Circuit Court of Appeals and ultimately to the U.S. Supreme Court.
