In a significant legal development, the Ninth Circuit Court of Appeals has affirmed a prior judgment that found Google's Play Store and its integrated payment mechanisms to be monopolistic. This ruling stems from a lawsuit initiated by Epic Games in 2020, asserting that Google engaged in anti-competitive behavior. The appellate court's endorsement of this verdict represents a substantial setback for the tech giant, effectively compelling it to dismantle key elements of its long-standing control over the Android app market.
\nFollowing the appellate court's announcement, Tim Sweeney, co-founder and CEO of Epic Games, expressed profound satisfaction, declaring it a “total victory” for his company. This legal outcome dictates that Google must modify its business practices, including restricting its capacity to financially incentivize phone manufacturers to pre-install the Play Store. Furthermore, it mandates that Google enable alternative app storefronts on Android devices and prohibits the company from compelling developers to exclusively utilize Google's proprietary payment solutions. A crucial aspect of the ruling also requires Google to grant "catalog access" to third-party app stores, ensuring they can genuinely compete by offering a comprehensive selection of applications.
\nEmbracing the favorable verdict, Tim Sweeney confirmed Epic Games' intention to launch the Epic Games Store directly on the Google Play Store for Android. Sweeney highlighted Epic's existing practice of hosting other PC-based digital storefronts, such as itch.io and GOG Galaxy, on its PC platform, emphasizing a commitment to open competition. This strategic move by Epic aims to leverage the court's decision to broaden developer and consumer choices within the Android ecosystem, potentially disrupting Google's previously unchallenged dominance in app distribution.
\nConversely, Google has articulated its strong disagreement with the court's decision, signaling its intent to pursue further appeals, possibly to the Supreme Court. A spokesperson for Google, Lee-Anne Mullholand, articulated the company's apprehension, stating that the ruling "will significantly harm user safety, limit choice, and undermine the innovation that has always been central to the Android ecosystem." Google reiterates its commitment to safeguarding its users, developers, and partners, while striving to maintain a secure platform amidst the ongoing legal challenge.
\nThe genesis of the Epic vs. Google litigation mirrors Epic's earlier confrontation with Apple. The lawsuit commenced after Epic deliberately bypassed Google's payment system for in-app purchases within Fortnite, prompting Google to remove the game from the Play Store. This calculated move set the stage for a legal battle that Epic framed as a broader fight for fairness and open competition in the digital realm. Unlike its case against Apple, Epic has found greater success against Google, proclaiming its initial 2023 victory as a triumph for all app developers and consumers worldwide.
\nDespite its intention to appeal, Google is now under an eight-month deadline to comply with the court's directives and implement changes to permit third-party app stores on Android. Both Epic and Google are required to designate members for a Technical Committee, which will oversee Google's adherence to the judgment. This verdict also overturns an administrative stay previously granted in October 2024, underscoring the immediate imperative for Google to begin adapting its practices, irrespective of its ongoing legal recourse.