In a seismic blow to Google, the Ninth Circuit Court of Appeals has upheld a December 2023 jury verdict declaring the tech giant’s Android Play Store an illegal monopoly. The ruling, issued unanimously on Thursday, paves the way for a court-ordered shakeup that could reshape the mobile app economy and cost Google billions in revenue.
The decision marks a landmark victory for Epic Games, the creator of Fortnite, which launched a legal crusade in 2020 to dismantle the monopolistic grip of Google’s Play Store and Apple’s App Store. Epic argued that Google’s 15% to 30% commissions on in-app transactions, enforced through exclusive payment systems, stifled competition and innovation. While Epic’s similar case against Apple largely failed, the Google lawsuit exposed the company’s anticompetitive tactics, including deals to block rival app stores.
Following a month-long trial, a jury found Google had rigged the Play Store to suppress alternatives, prompting US District Judge James Donato to order sweeping reforms. Google’s appeal, claiming the jury’s decision and Donato’s rulings were flawed, was rejected by a three-judge panel. The court noted “replete evidence” of Google’s dominance, fueled by practices that entrenched the Play Store’s market control.
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Unless Google secures a delay, it must soon open its 2 million-plus app library to rival stores and facilitate their distribution, moves it claims will expose users to privacy and security risks. Epic’s lawyers dismissed these concerns as fearmongering to protect Google’s profits.
This defeat is part of a broader antitrust reckoning for Google, with recent rulings also targeting its search engine and ad technology monopolies. As the company faces potential divestitures, including its Chrome browser and ad tech business, the Epic case signals a new era of scrutiny for Big Tech’s market dominance.
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