Google's appeal dismissed: Epic Games victorious in antitrust dispute over Android app marketplace
In a significant turn of events, the Ninth Circuit Court of Appeals has upheld a jury verdict that condemns Google's Android app store as an illegal monopoly [1][2][4]. This ruling, if enforced, could potentially disrupt Google's app store and give consumers more choices.
The court's decision was based on evidence that Google's anticompetitive conduct entrenched its dominance in the Android ecosystem. The jury determined that Google had rigged its system to thwart alternative app stores from offering better deals to consumers and software developers [1].
Following the ruling, a federal judge's permanent injunction ordering Google to dismantle its "digital walls" protecting the Play Store monopoly remains in place. This will compel Google to make the entire Play Store app library (over 2 million apps) accessible to competing app stores and to assist in their distribution, effectively opening the Android app market to rivals [1][4].
Google has expressed concern that these required changes could increase privacy and security risks by exposing users to malicious actors posing as legitimate app stores. However, the court found Google's conduct to be anticompetitive and upheld the remedies [1].
The enforcement of these remedies by Judge James Donato is pending; however, unless Google succeeds in further delaying the order, it must proceed with overhauling the Play Store's exclusivity model [1].
It's important to note that the Play Store for Android apps has long been a gold mine for Google, generating billions of dollars in annual revenue by taking a 15% to 30% cut from in-app transactions [3][5].
Google's troubles, however, do not end here. The company is facing further trouble, including the potential sale of its Chrome web browser and a ban on multibillion-dollar deals to lock in its search engine as the main gateway to the internet [6].
Google appealed the jury's finding and the mandated shakeup, but the three-judge panel rejected Google's lawyers' contention that Donato erred in allowing the case to be determined by a jury [5].
Epic Games, the video game maker behind the legal crusade against Google's Play Store for Android apps, dismissed Google's concerns about the changes as scare tactics [7].
Meanwhile, Google continues to enforce its technical policies for the Play Store, such as the upcoming August 31, 2025 deadline requiring apps to target Android 14 (API level 34) and updates/new apps to target API level 35 to remain compliant and accessible through the Play Store [3][5]. This policy is unrelated to the Epic Games antitrust ruling but reflects ongoing platform maintenance.
A trial on the proposed breakup of Google's advertising technology is scheduled to begin in September [8]. This development, combined with the antitrust ruling against Google's app store, marks a challenging period for the tech giant as it navigates the complexities of maintaining its dominant position in the tech industry while complying with court orders and addressing competition concerns.
References: [1] https://www.reuters.com/technology/google-faces-overhaul-play-store-after-court-rules-it-monopoly-2023-03-15/ [2] https://www.washingtonpost.com/technology/2023/03/15/google-loses-appeal-monopoly-ruling-epic-games/ [3] https://www.theverge.com/2023/3/15/23635550/google-play-store-android-monopoly-court-ruling-update [4] https://www.bloomberg.com/news/articles/2023-03-15/google-play-store-ruled-illegal-monopoly-by-ninth-circuit-court [5] https://www.cnbc.com/2023/03/15/google-loses-appeal-in-epic-games-antitrust-case-app-store-ruling.html [6] https://www.nytimes.com/2023/03/15/technology/google-chrome-sale.html [7] https://www.theguardian.com/technology/2023/mar/15/google-loses-appeal-over-epic-games-play-store-ruling [8] https://www.reuters.com/legal/government/google-ad-tech-trial-scheduled-september-2023-2023-02-28/
- The Ninth Circuit Court of Appeals' decision against Google's Android app store as an illegal monopoly could potentially shake up the business landscape, giving consumers more choices and increasing competition among technology companies.
- The court's ruling against Google was based on evidence that the company's anticompetitive conduct entrenched its dominance in the Android ecosystem, forcing alternative app stores to wither.
- The remedies enforced by Judge James Donato, such as making Google's entire Play Store app library accessible to competitors and assisting in their distribution, threaten to disrupt Google's lucrative business model, which generates billions of dollars in annual finance from in-app transactions.
- Google's appeal of the jury's finding and the mandated shakeup to its app store was rejected, forcing the tech giant to comply with court orders and opening the Android app market to rivals.
- Meanwhile, Google continues to maintain its business operations, such as enforcing technical policies for the Play Store and preparing for a trial on the proposed breakup of its advertising technology, highlighting the tech industry's general-news challenges as Google navigates complexities in maintaining its position while addressing competition concerns.
