Google lost its appeal of a judge’s order requiring an overhaul of its app store policies in an antitrust case filed by Fortnite developer Epic Games. Epic Games CEO Tim Sweeney is celebrating the court win as a “total victory” over Google, whose app store policies he has long criticized as monopolistic.
Bloomberg reports that in a major setback for Google, the 9th U.S. Circuit Court of Appeals upheld a lower court ruling on Thursday that will force the tech giant to change its restrictive Google Play app store policies. The unanimous decision affirms an injunction previously issued against Google in its ongoing antitrust battle with Epic Games, the maker of the popular Fortnite video game.
The injunction, which was put on hold pending Google’s appeal, will now take effect, compelling Google to allow app developers to set up alternative in-app payment systems and app stores within the Google Play ecosystem. The ruling deals a significant blow to Google’s control over its Android app marketplace.
“It is well established that antitrust remedies can and often must proscribe otherwise lawful conduct to unwind and further prevent violators’ anticompetitive activity,” wrote Judge Margaret McKeown in the court’s opinion. “The district court had within its basket of remedial powers the authority to require Google to deal with parties harmed by its anticompetitive conduct, including its competitors.”
Google expressed disappointment with the decision, arguing it would “significantly harm user safety” and stifle innovation on the Android platform. “Our top priority remains protecting our users and developers, and ensuring a secure platform as we continue our appeal,” said Lee-Anne Mulholland, Google vice president for regulatory affairs.
Epic Games CEO Tim Sweeney celebrated the ruling on social media, indicating the company would now be able to offer its own Epic Game Store through Google Play. The case originated from Epic’s claims that Google engaged in anticompetitive practices by requiring developers to use its proprietary billing system and blocking rival app stores.
While the exact financial impact on Google remains unclear, as the company does not disclose app store revenue separately, analysts suggest the ruling could potentially drag Google’s gross app store sales by 20 to 30 percent. This translates to a potential $1-1.5 billion hit to Google’s gross profit.
The decision comes amidst heightened global regulatory scrutiny of Google’s business practices. The company faces impending rulings in other antitrust cases that could force changes to its search and advertising businesses. The Epic case highlights the growing pressure on tech giants to create more open and competitive app store environments.
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
