A PYMNTS Company

Google Seeks Reversal of Antitrust Ruling in Epic Games Case

By  |  December 1, 2024

Alphabet Inc.’s Google is appealing a federal court ruling that requires it to overhaul its Play Store operations following an antitrust lawsuit brought by Epic Games, the maker of Fortnite. The tech giant filed its request on Wednesday with the Ninth Circuit Court of Appeals, asking the court to set aside U.S. District Judge James Donato’s decision.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Google contends that the ruling, which mandates allowing third-party app marketplaces and alternative billing options on its platform, is fundamentally flawed. According to TechXplore, the company argues that Judge Donato erred by failing to account for its competition with Apple Inc. in the smartphone ecosystem. Google points out that a separate judge previously determined Apple’s conduct toward Epic did not breach federal antitrust laws, highlighting what it views as inconsistent standards.

    Dispute Over Legal Process

    Google also challenged the procedural aspects of the case, claiming that the judge should have ruled on the matter himself instead of putting it before a jury. The company maintains that it is under no legal obligation to conduct business with rival app stores and warned that the ruling could have far-reaching consequences.

    “This case involves an extraordinary attempt by a lone competitor to use the federal judiciary to restructure the day-to-day operations of Google’s app store, Google Play, and to unilaterally reshape markets with consequences for millions of non-parties,” Google said in its filing.

    Read more: Google Appeals Ruling Overhaul of Play Store in Epic Games Lawsuit

    Epic Games Responds

    Epic Games, in response, labeled Google’s appeal as baseless. “Google’s arguments are meritless and flawed,” an Epic spokesperson stated, per the Reuters. The company vowed to defend the original verdict and ensure Google is held accountable for what it describes as anticompetitive practices.

    The dispute stems from allegations that Google engaged in anti-competitive behavior by requiring mobile device manufacturers, such as Samsung, to enter into revenue-sharing agreements that effectively blocked rival app stores. In December 2023, a San Francisco jury ruled that these actions violated antitrust laws. Judge Donato’s follow-up injunction in October 2024 directed Google to allow third-party developers more freedom on its platform, including bypassing Google’s proprietary billing system.

    Broader Implications

    The case is part of a larger battle initiated by Epic Games in 2020 against both Google and Apple, accusing the tech giants of stifling competition for app marketplaces. While Epic faced setbacks in its case against Apple, including a ruling that largely sided with the iPhone maker, the company continues to push for broader changes in the digital marketplace.

    Judge Donato has temporarily stayed the enforcement of his ruling. The appeals court will now decide whether to extend the stay while Google seeks to overturn the decision. If the ruling stands, it could set a significant precedent, potentially reshaping the operations of app stores across the tech industry.

    Source: TechXplore