Google’s Major Loss Signals Significant Changes Ahead for the Play Store

Following a lengthy legal battle with Epic Games, Google’s appeal has been denied, cementing a previous jury ruling from 2023. This ruling found that Google’s Play Store and payment practices functioned as illegal monopolies. Consequently, Google must comply with a court order mandating significant changes to how the Play Store operates.

The 9th U.S. Circuit Court of Appeals has upheld the ruling, supporting claims that Google’s app store policies were both unfair and anti-competitive. As a result, app developers are now permitted to use their own payment systems and can even launch competing app stores on the Android platform.

The root of the lawsuit traces back to 2020, when Epic Games initiated legal proceedings to challenge Google’s practices. By 2023, a jury concluded that Google was actively working to suppress competition and ordered major adjustments to the Play Store. Although the judge’s order was temporarily put on hold while Google appealed, the 9th Circuit Court ultimately rejected Google’s arguments.

The company argued that it was not allowed to present evidence regarding the competition between the Play Store and Apple’s App Store, claiming this limitation unfairly favored Epic. Judge Margaret McKeown, representing the unanimous panel, emphasized that even legal practices could violate antitrust laws if they reinforce monopolistic control. In response to the verdict, Lee-Anne Mulholland, Google’s VP of regulatory affairs, expressed concerns about the ruling’s potential impact on user safety and innovation.

Despite the setback, Google is determined to continue its fight in court. Epic Games CEO Tim Sweeney celebrated the court’s decision, expressing optimism for the eventual launch of the Epic Games Store on Google Play. However, the legal landscape remains murky as it is uncertain whether Google can legally prevent Epic from operating its store during the next appeal.

Meanwhile, Google is facing additional scrutiny in unrelated cases, including its dominance in search and advertising markets.