Recent Legal Battle: Google’s Play Store Ruled as Illegal Monopoly
The Ninth Circuit Court of Appeals recently upheld a jury’s decision that Google’s Play Store for Android apps functions as an illegal monopoly. This ruling came after Google’s attempts to reverse an earlier decision in favor of Epic Games were rejected. The court affirmed that Google used unlawful practices to maintain its dominance in the mobile app marketplace.
The dispute originated from the high commissions developers faced on in-app purchases through Apple’s App Store and Google’s Play Store, particularly with the rise of mobile gaming and Epic’s Fortnite. In response to these fees, Epic introduced its own payment system within Fortnite in 2020, leading to the game’s removal from both app stores and subsequent lawsuits that have significant implications for the app store business model.
“Big Tech argues these cases are too ‘complex’ for juries. But a jury decided this case, and today, the Ninth Circuit backed them up. Turns out Americans are more than up to the task of deciding when monopolists break the law. If the public bears the harm, we deserve the right to…” – Hetal Doshi
While Epic lost its case against Apple, the jury found that Google’s practices in app distribution and payment systems on Android were anti-competitive. Despite Android’s open-source nature, the court determined that Google’s control over app market access and deals with device manufacturers solidified its position as the primary gatekeeper for Android software.
In its appeal, Google disputed various aspects of the trial, including the exclusion of competition with Apple’s App Store from jury consideration. The company also argued against the judge’s remedies, claiming they would be costly and disruptive to its business model.
However, Judge Margaret McKeown’s detailed opinion highlighted evidence of Google’s anticompetitive behavior and the necessity of the court’s remedies to address the impact on the digital marketplace. The ruling mandates significant changes to the Play Store, such as allowing third-party app stores within the platform and enabling developers to use alternative payment methods.
Google now faces a transformation in its app ecosystem, with increased competition among app stores and payment systems. While the company may seek review by the US Supreme Court, the Play Store and the broader Android ecosystem are poised for a new era of competition.
