The U.S. Court of Appeals for the Ninth Circuit has reaffirmed a jury verdict and permanent injunction against Google, marking another victory for Epic Games in their ongoing antitrust litigation. This decision emphasizes Google’s violation of federal and California antitrust laws by monopolizing Android app distribution and in-app billing services. According to Judge M. Margaret McKeown, the district court acted appropriately in its factual determinations and in crafting a three-year injunction aimed at restoring competitive practices. Details about the ruling can be found here.
The court’s decision comes after Google argued against Epic’s different market definitions—particularly compared to Epic’s previous case against Apple. However, the Ninth Circuit differentiated Google’s open-source Android system from Apple’s more closed iOS platform, supporting Epic’s claims that Google’s barriers were specific to Android. This ruling takes into account the unique contexts required for antitrust market definition.
Google’s procedural concerns regarding trial format, jury instructions, and Epic’s standing for nationwide relief were rejected. Epic, having been ousted from the Play Store, demonstrated an ongoing threat of injury, justifying a marketwide injunctive relief. The geographic scope of the injunction aligns with traditional antitrust equity principles and does not conflict with recent U.S. Supreme Court opinions on nationwide injunctions.
Further affirming the district court’s discretion, the panel upheld a permanent injunction under Section 16 of the Clayton Act, mandating Google to enable rival app stores access to the Play Store catalog, subject to security measures. The relationship between these remedies and the jury’s findings was underlined as a justified means to counteract Google’s illegal conduct.
The court also dismissed Google’s argument that the injunction constituted an unlawful “duty to deal” and found the pricing provision reasonable to prevent excessive pricing that could undermine the remedy. This legal battle was initiated by Epic in 2020 following Google’s removal of “Fortnite” from the Play Store after Epic attempted to circumvent Google’s 30% commission on in-app purchases through Project Liberty.
As the legal landscape continues to evolve in the tech industry, Google faces increasing scrutiny regarding its monopolistic practices in app distribution and billing on the Android platform. This ruling marks a significant affirmation of antitrust enforcement, reflecting ongoing tensions between platform providers and developers in a rapidly digitalizing economy. Further analysis of this case is available through additional reporting.