Google loses appeal over app store overhaul in Epic Games case

In a significant legal setback for the tech giant, Google has officially lost its appeal against a judge’s order to overhaul its dominant app store, stemming from an antitrust lawsuit filed by Fortnite creator, Epic Games. The ruling by the 9th U.S. Circuit Court of Appeals on Thursday upholds the earlier verdict, mandating fundamental changes to how Google operates its Play Store.

The appellate court decisively rejected Google’s core argument that the trial judge committed legal errors, which Google claimed unfairly favored Epic Games throughout the antitrust proceedings. This decision marks a pivotal moment in the ongoing battle over digital platform control and fair competition.

The saga began in 2020 when Epic Games initiated its lawsuit, accusing Google of engaging in monopolistic practices within the Android app distribution market. After a lengthy legal battle, a jury sided with Epic Games in 2023, concluding that Google had indeed illegally stifled competition by imposing restrictions on its app store and payment systems.

Following the jury’s verdict, the trial judge in October 2024 issued a landmark order compelling Google to open its app store to alternative payment systems and allow Android users greater freedom in downloading apps from rival sources. This order, which could significantly disrupt Google’s revenue model from app sales and in-app purchases, had been placed on hold pending the outcome of Google’s appeal.

During its appeal, Google contended that its Play Store operates within a competitive landscape, directly vying with Apple’s App Store for market share. The company argued that the trial judge unfairly prevented it from presenting this crucial defense, thereby undermining its case against Epic’s antitrust claims. However, the appeals court found these arguments unpersuasive, affirming the original court’s findings.

This ruling reinforces the precedent for greater competition in the digital marketplace and is expected to pave the way for a more open ecosystem for Android app distribution. The tech world will be watching closely as Google now moves to comply with the court-ordered reforms.