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Google loses US appeal in landmark Epic Games antitrust case
The court found no merit in Google's claims that U.S. District Judge James Donato had committed legal errors in the case, which was filed by Fortnite creator Epic Games in 2020.
Alphabet's Google suffered a major legal setback on Thursday after a U.S. federal appeals court unanimously rejected its bid to overturn a landmark jury verdict in favour of Epic Games, Reuters reported.
The ruling by the 9th U.S. Circuit Court of Appeals affirmed a lower court order requiring Google to revamp its Play Store.
The court found no merit in Google's claims that U.S. District Judge James Donato had committed legal errors in the case, which was filed by Fortnite creator Epic Games in 2020.
As per the report, Circuit Judge M. Margaret McKneown, joined by Judges Danielle Forrest and Gabriel Sanchez, wrote that the record was "replete with evidence that Google's anticompetitive conduct entrenched its dominance."
Epic successfully argued that Google monopolized the Android app distribution market and unfairly restricted how users access apps and make in-app purchases. A San Francisco jury sided with Epic in 2023, setting the stage for sweeping remedies.
Judge Donato's October order - now greenlit by the appeals panel - mandates Google to allow rival app stores to be downloaded within the Play Store and to provide access to its app catalogue to competitors.
The decision, however, is not final. Google can seek a rehearing by the full 9th Circuit or take the matter to the U.S. Supreme Court. Meanwhile, the injunction remains in effect, the report added.
Lee-Anne Mulholland, Google's vice president of regulatory affairs, criticized the decision, warning that it “will significantly harm user safety, limit choice, and undermine the innovation that has always been central to the Android ecosystem.” The company said it would continue to pursue an appeal and focus on maintaining a secure platform.
Epic CEO Tim Sweeney celebrated the court’s decision, posting on social media: “Thanks to the verdict, the Epic Games Store for Android will be coming to the Google Play Store!”
Google had also contended that the trial was flawed because Donato prevented it from arguing that its Play Store competes with Apple’s App Store. The company further maintained that Epic’s lawsuit should not have gone to a jury at all, as it sought injunctive relief rather than damages - a point the appeals court also dismissed.
The case has drawn wide attention and support for Epic, including briefs filed by Microsoft, the U.S. Justice Department, and the Federal Trade Commission. All echoed concerns about Google's dominance in mobile app distribution.
This ruling adds to the mounting antitrust pressure on Google, which is also facing lawsuits from the Justice Department over its search and advertising businesses, the report added.
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