Federal court declares Google Play Store an illegal monopoly
- A jury determined that Google's Play Store engaged in practices that harmed competition and consumers.
- The Ninth Circuit Court upheld the jury's decision and ordered changes to the Play Store's operations.
- This ruling represents a significant victory for Epic Games and a potential turning point for app store competition.
In a significant legal decision, a federal appeals court in the United States upheld a jury verdict condemning Google’s Android app store as an illegal monopoly. This ruling, issued by the Ninth Circuit Court of Appeals, was a part of ongoing legal battles that have plagued Google since late 2023. The jury's December 2023 verdict was a critical point in Epic Games' legal efforts against Google, initiated nearly five years ago. Epic Games aimed to challenge the restrictive practices of major app store providers, work that began as a means to negotiate better payment processing terms for developers and consumers alike. The jury concluded that Google's practices not only entrenched its market dominance but also unfairly stifled competition, undermining chances for other app stores to offer better pricing models. Consequently, federal judge James Donato’s order mandated significant changes to how the Google Play Store operates. This included opening up the Play Store's extensive library of over 2 million apps to competitors and allowing users to access alternative payment systems without being subject to Google's high commissions, which typically range from 15% to 30%. In its appeal, Google contended that the required changes could lead to security and privacy risks, claiming it would potentially expose consumers to fraudulent entities posing as genuine app stores. However, these arguments were dismissed by the federal court, which sided with the evidence presented by Epic Games regarding Google’s anticompetitive behavior and its adverse impacts on consumers and software developers. This ruling is particularly impactful as it follows a slew of legal challenges faced by Google, including separate monopoly decisions against its search engine and digital advertising business. As part of addressing these antitrust concerns, the U.S. Justice Department is actively pursuing measures that could lead to substantial alterations in Google's business structure, including possibly forcing the sale of its Chrome web browser. Additionally, Google could see further complications stemming from ongoing proposals to dismantle aspects of its advertising technology, with a trial on this matter expected to commence in September.