SAN FRANCISCO: Alphabet’s Google (GOOGL.O) has failed to convince a U.S. appeals court to further pause an injunction that forces it to overhaul its Play Store operations, a major win for “Fortnite” maker Epic Games in a closely watched antitrust case.
The 9th U.S. Circuit Court of Appeals in San Francisco denied Google’s request to extend the freeze on a lower court order requiring sweeping reforms. The injunction compels Google to allow rival app stores to operate within Play, make Play’s app catalog available to competitors, and open the door to alternative in-app payment methods.
Court ruling and timeline
The appeals court said Google had not met the “high bar” necessary to keep the injunction on hold. Google now faces 30 days to comply with some provisions of the order and up to 10 months for others.
The court also said it would not revisit Google’s appeal, though the company can still take the case to the U.S. Supreme Court.
Google said it was “disappointed” with the ruling and argued that the injunction could harm consumer security and privacy.
Epic’s response
Epic Games CEO Tim Sweeney welcomed the decision on X, writing that developers and consumers would soon benefit from increased competition.
Epic first sued Google in 2020, alleging the tech giant monopolised app distribution and in-app payments on Android devices. A San Francisco jury sided with Epic in 2023, and U.S. District Judge James Donato subsequently issued the injunction.
Under the order, for three years Google cannot:
- Prohibit third-party in-app payment methods.
- Block users from downloading and using rival Android app stores.
- Pay device makers to preinstall its app store.
- Share Play Store revenue with other app distributors to discourage competition.
In upholding the injunction earlier this year, a 9th Circuit panel said the record was “replete with evidence that Google’s anticompetitive conduct entrenched its dominance.”
A broader tech battle
Google has denied wrongdoing and argued the ruling creates a split legal standard between itself and Apple, which prevailed in a similar Epic lawsuit over its App Store.
Epic largely lost that case in 2021, leaving Apple free to maintain control over its payment systems. Google now says the conflicting outcomes put it at a disadvantage.
