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Epic Games accused Google of monopolizing Android app

access and

transactions

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Court orders Google to allow rival app stores within Play

store

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Google claims ruling harms user safety and limits choice

By Mike Scarcella

July 31 (Reuters) - Alphabet's Google on

Thursday failed to persuade a U.S. appeals panel to overturn a

jury verdict and federal court order requiring the technology

company to revamp its app store Play.

The San Francisco-based 9th U.S. Circuit Court of Appeals, in a

unanimous ruling, rejected claims from Google that the trial

judge made legal errors in the antitrust case that unfairly

benefited "Fortnite" maker Epic Games, which filed the lawsuit

in 2020.

Epic accused Google of monopolizing how consumers access

apps on Android devices and pay for transactions within apps.

The Cary, North Carolina-based company convinced a San Francisco

jury in 2023 that Google illegally stifled competition.

U.S. District Judge James Donato in San Francisco ordered Google

in October to restore competition by allowing users to download

rival app stores within its Play store and by making Play's app

catalog available to those competitors, among other reforms.

Donato's order was on hold pending the outcome of the 9th

Circuit appeal. The court's decision can be appealed to the full

9th Circuit and ultimately to the U.S. Supreme Court.

In a statement, Lee-Anne Mulholland, Google's vice president

of regulatory affairs, said the appeals court's ruling "will

significantly harm user safety, limit choice, and undermine the

innovation that has always been central to the Android

ecosystem."

The company said it would continue to focus on "ensuring a

secure platform as we continue our appeal."

Epic CEO Tim Sweeney said in a social media post: "Thanks to

the verdict, the Epic Games Store for Android will be coming to

the Google Play Store!"

Google told the appeals court that the tech company's Play

store competes with Apple's ( AAPL ) App Store, and that Donato

unfairly barred Google from making that point to contest Epic's

antitrust claims.

The tech company also argued that a jury should never have

heard Epic's lawsuit because it sought to enjoin Google's

conduct - a request normally decided by a judge - and not

collect damages.

Epic has defended the verdict and court injunction, telling

the 9th Circuit judges that the Android app market has been

"suffering under anti-competitive behavior for the better part

of a decade."

In the trial court and in the appeal, Epic disputed

arguments by Google that changes to its app business ordered by

the court would harm user privacy and security.

Microsoft ( MSFT ) filed a brief backing Epic, as did the

U.S. Justice Department and Federal Trade Commission.

Epic separately is battling Apple ( AAPL ) over a U.S. judge's order

requiring the iPhone maker to give developers greater freedom to

steer consumers to make purchases outside its App Store.

Apple ( AAPL ) has appealed a ruling that said it violated a prior

injunction in a lawsuit that Epic filed in 2020.