Google has lost a major legal battle against Epic Games, the maker of Fortnite, over antitrust practices in its app store Play. The San Francisco-based 9th US Circuit Court of Appeals rejected Google's attempt to undo a ruling that said the company unfairly controlled how Android users get their apps and make payments. The court ordered Google to revamp its app store, allowing rival app stores to operate within its ecosystem and enabling developers to use alternative payment methods.

The dispute began in 2020 when Google removed Fortnite from its store for bypassing Google's billing system, which imposes up to a 30% fee on transactions. Epic Games accused Google of monopolizing how consumers access apps on Android devices and pay for transactions within apps. A San Francisco jury in 2023 found Google's practices unlawful, and US District Judge James Donato ordered Google to restore competition.

The appeals court panel said Google's behavior blocked competition and helped it stay on top. The ruling could boost competition, potentially lowering costs for developers and consumers alike. Google has signaled it may appeal to the Supreme Court, but for now, the injunction's implementation looms, which could begin as early as November.

The reforms mandated by the court include allowing rival app stores to operate within Google's ecosystem for at least three years, prohibiting anticompetitive agreements with manufacturers, and enabling developers to use alternative payment methods without retaliation. This could erode Google's revenue from the Play Store, which generated billions annually through commissions.

The decision aligns with mounting scrutiny from regulators globally. The European Union's Digital Markets Act already forces similar openness on tech giants, and this US verdict could embolden antitrust enforcers in other jurisdictions. Epic's victory might encourage other developers to pursue their own claims against app store fees.¹ ²

Google has expressed concerns that the reforms will significantly harm user safety, limit choice, and undermine innovation in the Android ecosystem. However, Epic has defended the verdict and court injunction, stating that the Android app market has been suffering under anti-competitive behavior for nearly a decade.