Alphabet’s Google has suffered a major legal defeat in its long-running antitrust battle against Epic Games, the maker of the popular game Fortnite. The 9th U.S. Circuit Court of Appeals in San Francisco upheld a lower court ruling that found Google had unfairly dominated the Android app market and stifled competition in how users download apps and make in-app payments.
Google had appealed the decision, arguing that U.S. District Judge James Donato had made critical legal errors that favored Epic. But the appellate court rejected Google’s claims, stating that the trial record was “replete with evidence that Google’s anti-competitive conduct entrenched its dominance,” according to Circuit Judge M. Margaret McKeown, joined by Judges Danielle Forrest and Gabriel Sanchez.
The decision marks a significant win for Epic Games, which has pushed for more open app marketplaces since it filed the lawsuit in 2020. The company argued that Google had monopolized app distribution and in-app payment systems on Android devices, limiting consumer choice and suppressing competition.
In a 2023 trial, a San Francisco jury sided with Epic, prompting Judge Donato to order sweeping reforms — including requiring Google to allow rival app stores within the Play Store and making its app catalog accessible to competitors. However, those reforms had been on hold pending Google’s appeal.
Now, with the appellate court’s ruling, the injunction may soon take effect unless Google successfully appeals to the full 9th Circuit or the U.S. Supreme Court.
In response, Google’s Vice President of Regulatory Affairs, Lee-Anne Mulholland, said the decision “will significantly harm user safety, limit choice, and undermine the innovation that has always been central to the Android ecosystem.” She confirmed the company will continue to pursue its appeal.
Epic CEO Tim Sweeney celebrated the ruling, announcing in a social media post that the Epic Games Store for Android would soon arrive on the Google Play Store.
Google had argued that its Play Store competes directly with Apple’s App Store and claimed it was unfairly blocked from presenting this point during trial. It also contended that Epic’s request for an injunction, rather than monetary damages, should have been decided solely by a judge.
The appellate panel dismissed these arguments, noting that Judge Donato had conducted “extensive proceedings” before issuing the injunction.
Epic, supported in the case by Microsoft, the U.S. Justice Department, and the Federal Trade Commission, has consistently maintained that Google’s control over the Android ecosystem has harmed competition for nearly a decade. The company also disputed Google’s claims that the court-ordered changes would jeopardize user privacy and security.
Separately, Epic is also locked in a legal battle with Apple over a similar issue regarding the iOS App Store and developers’ ability to direct users to external payment methods.
