Court Upholds Ruling That Google Play Store Operates as Illegal Monopoly
The U.S. Ninth Circuit Court of Appeals has upheld a landmark jury verdict that found Google’s Play Store to be operating as an illegal monopoly, handing a significant win to Epic Games in a long-running antitrust battle over mobile app distribution.
The case stems from Epic’s 2020 decision to bypass Google’s in-app payment system in its hit game Fortnite, triggering Google’s removal of the app from the Play Store and setting the stage for a high-profile legal showdown. While Epic lost a similar case against Apple, the jury found last December that Google engaged in anticompetitive conduct to maintain its dominance over Android app distribution and payments.
Despite Android’s open-source nature, the court agreed that Google’s contractual agreements with device makers and its control over core app access effectively made the Play Store the only viable path for developers, stifling meaningful competition.
In its appeal, Google argued that the jury was misled by being prevented from considering Apple’s App Store as a competitive force, and claimed that a judge – not a jury – should have ruled on the antitrust claims. The company also warned that court-ordered remedies would be burdensome and disrupt its business model.
However, Judge Margaret McKeown dismissed these arguments, stating that evidence of Google’s anticompetitive behavior was overwhelming. She noted that the company’s market power was reinforced through network effects and restrictive terms imposed on developers.
Under the court’s ruling, Google must now allow third-party app stores within the Play Store and permit developers to use their own billing systems – marking a significant shift in how Android apps are distributed and monetized. For the next three years, Google is also prohibited from offering developers incentives for platform exclusivity.
Though Google may seek to escalate the matter to the U.S. Supreme Court, the ruling signals a potential turning point in mobile app economics, with developers poised to benefit from more flexibility and users gaining greater choice in how they access and pay for apps.
