Google Loses Appeal to Block Epic Games’ Play Store Antitrust Ruling

Alphabet’s Google has failed to convince a U.S. appeals court to extend a freeze on an order requiring sweeping reforms to its Play Store. The San Francisco-based 9th U.S. Circuit Court of Appeals rejected Google’s request, ruling that the company did not meet the high bar necessary to pause the injunction while it challenges the decision in its ongoing legal battle with Fortnite maker Epic Games.

The injunction, issued by U.S. District Judge James Donato, compels Google to restore competition in the Android app ecosystem. Among the reforms, Google must allow users to download rival app stores directly through Play, make its app catalog accessible to competitors, and permit developers to use alternative in-app payment methods. The order also prohibits Google from paying device makers to preinstall its store or sharing revenue with other distributors to secure dominance.

Google has up to 10 months to comply with certain provisions and 30 days for others. The company, which denies wrongdoing, argued that the injunction is “unprecedented” and threatens consumer security and privacy. Google signaled it may take the case to the U.S. Supreme Court.

Epic Games, which filed the lawsuit in 2020 accusing Google of monopolizing app distribution and in-app payments, celebrated the ruling. CEO Tim Sweeney said the decision ensures developers and consumers will benefit from more choice and fairer competition.

In 2023, a San Francisco jury found that Google engaged in anticompetitive practices to entrench its dominance. A July appeals court panel upheld that verdict, stating the record was filled with evidence of Google’s illegal conduct. While Epic lost a similar case against Apple, the ruling against Google sets up a potential conflict in legal standards between the two tech giants.