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Google Loses Appeal in Epic Antitrust Battle, Must Open Play Store to Competition

By  |  July 31, 2025
Google Loses Appeal in Epic Antitrust Battle, Must Open Play Store to Competition

Google must make sweeping changes to its Play Store practices after a federal appeals court upheld a previous ruling in an antitrust lawsuit brought by Fortnite creator Epic Games, according to Bloomberg. The decision, delivered Thursday by the U.S. Court of Appeals for the Ninth Circuit, reaffirms a lower court’s order requiring Google to open its Android platform to alternative app stores and billing systems.

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    The injunction had been paused during Google’s appeal, but the new ruling means the company will now need to dismantle restrictions that effectively block competitors from establishing rival marketplaces. Per Bloomberg, the court’s decision deals a significant blow to Alphabet Inc., which has faced mounting legal pressure over its app distribution practices.

    Writing for the court, Judge Margaret McKeown explained that antitrust remedies may limit actions that are otherwise lawful, if necessary to dismantle anticompetitive behavior. “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,” McKeown stated in the opinion, which was backed by a unanimous panel.

    Google voiced concern about the potential fallout from the ruling. “Our top priority remains protecting our users and developers, and ensuring a secure platform as we continue our appeal,” said Lee-Anne Mulholland, vice president for regulatory affairs at Google. The company contends that the mandated changes could compromise user safety and hinder innovation within the Android ecosystem.

    Read more: Epic Criticizes UK Decision Not to Mandate App Store Alternatives

    The case stems from a December 2023 jury verdict that found Google had violated antitrust laws by creating exclusive arrangements with smartphone makers and app developers. That verdict led U.S. District Judge James Donato to issue an order mandating policy reforms aimed at fostering greater competition within the Android app ecosystem.

    According to Bloomberg, Google’s legal team had hoped to persuade the appellate court that Donato should have followed a 2021 decision in which another judge sided with Apple in a similar challenge from Epic. However, the Ninth Circuit panel rejected that argument, emphasizing that each case must be evaluated on its own factual and legal footing.

    The ruling comes at a time when Google is under intensifying scrutiny from regulators globally, who are increasingly focused on the influence and practices of dominant tech platforms.

    Source: Bloomberg